I found the conflict with the eGalax Touch Daemon driver. 
I moved the driver startup from /etc/init.d/eGtouch.sh 
to userspace as I don't need the touchscreen at login. 

The strange thing is I have 17 machines with this configuration and only
one is exhibiting this behaviour with plymouthd

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https://bugs.launchpad.net/bugs/1192051

Title:
  plymouthd spinning at 100% CPU after I log in

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