The issue seems created by the gnome-session changes from
3.24.1-0ubuntu5

" * Backport patches from 3.25.3 to kill D-Bus clients on log out.
    This works around GNOME Online Accounts not working correctly
    after logging out (LP: #1610944)"

It fails every time to login it again here but downgrading gnome-session
to the previous version fixes the issue.

Note that the problem is not specific to lightdm, the behaviour is the
same using "startx -- :1" to start the session

** Package changed: lightdm (Ubuntu) => gnome-session (Ubuntu)

** Changed in: gnome-session (Ubuntu)
       Status: New => Confirmed

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https://bugs.launchpad.net/bugs/1700485

Title:
  Second login always fails. I have to reboot between logins

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