Update: It might have to do with the interaction between Plymouth (the
splash screen) and GDM.

I booted into recovery mode, activated networking and entered into the root 
prompt to run the following commands to uninstall Plymouth (to troubleshoot the 
issue):
apt remove plymouth libplymouth4

Unfortunately it didn't fix the issue. However, while running the apt command 
to uninstall plymouth, the following output was shown:
[FAILED] Failed to start plymouth-quit-wait.service
See 'systemctl status plymouth-quit-wait.service' for details
[FAILED] Failed to start plymouth-read-write.service
See 'systemctl status plymouth-read-write.service' for details

After running the 2 commands indicated above (after uninstalling plymouth), I 
get the following output: 
root@hostname:~# systemctl status plymouth-quit-wait.service
⚫ plymouth-quit-wait.service
        Loaded: not-found (Reason: no such file or directory)
        Active: inactive (dead)

root@hostname:~# systemctl status plymouth-read-write.service
⚫ plymouth-read-write.service
        Loaded: not-found (Reason: no such file or directory)
        Active: inactive (dead)

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https://bugs.launchpad.net/bugs/1649682

Title:
  OEM install does not work on Ubuntu GNOME or Kubuntu

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