Please attach (do not copy/paste) your /var/log/Xorg.0.log. This will
give an indication why it didn't include the 1024x768 resolution.
The issue with displayconfig-gtk is a separate bug so won't be covered
here.
** Changed in: xserver-xorg-video-vesa (Ubuntu)
Status: New => Incomplete
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xserver-xorg-video-vesa driver does not support 1024x768 on VIA Chrome9 HC IGP
https://bugs.launchpad.net/bugs/223920
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