Since an update a couple of days ago, I have the same symptoms.
I log in normally, the desktop appears (with icons) but nothing else.
With right mouse click I can open a terminal, but windows have no
borders and no menus.
I removed my ~/.config/dconf and .config/compiz-1 and checked my
.XAuthority permissions, but the problem subsists.
My .xsession-errors only contain this:
openConnection: connect: No such file or directory
cannot connect to brltty at :0
I'm running Ubuntu 16.04.1 LTS
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Login Successful, Desktop Never Loads
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