I believe the issue is that the gnome-session-inhibit call is terminated
after the upgrade unless you are running a GNOME session.

https://bazaar.launchpad.net/~ubuntu-core-dev/ubuntu-release-
upgrader/trunk/view/head:/DistUpgrade/DistUpgradeQuirks.py#L444

After the upgrade completed and choosing not to reboot I was presented
with a lock screen that continually said "Authentication failed".

Did your upgrade complete and then the screen locked?

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https://bugs.launchpad.net/bugs/1778817

Title:
  release upgrade from xenial to bionic desktop: screen locks itself,
  password to unlock fails

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