I am having this issue on 16.04. I am not sure if that is due to nvidia
driver installed on the machine.

Section "ServerLayout"
    Identifier "layout"
    Screen 0 "nvidia"
    Inactive "intel"
EndSection

Section "Device"
    Identifier "intel"
    Driver "modesetting"
    BusID "PCI:0@0:2:0"
    Option "AccelMethod" "None"
EndSection

Section "Screen"
    Identifier "intel"
    Device "intel"
EndSection


However, I do not have nvidia GPU on the machine. I will uninstall all nvidia 
packages to try.

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https://bugs.launchpad.net/bugs/1485236

Title:
  gpu-manager generates an invalid xorg.conf file

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