The problem seems to be:
$ initctl get-env -g XDG_DATA_DIRS
/usr/share/ubuntu-touch:/usr/share/ubuntu-touch:/usr/share/ubuntu-touch:/usr/share/ubuntu-touch::/custom/usr/share/:/custom/usr/share/
Compared to a working, upgraded device:
$ initctl get-env -g XDG_DATA_DIRS
/custom/xdg/data:/usr/share/ubuntu-touch:/usr/share/ubuntu-touch:/usr/share/ubuntu-touch:/usr/local/share:/usr/share:/custom/usr/share/
** Also affects: ubuntu-touch-session (Ubuntu)
Importance: Undecided
Status: New
** Changed in: unity8 (Ubuntu)
Status: Incomplete => Invalid
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https://bugs.launchpad.net/bugs/1604421
Title:
Unity 8 fails to start on staging (xenial) on the phone when --wipe is
used for flashing
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