It appears with the new gdm, it no longer triggers FailsafeServer after N failed tries. Instead, gdm simply exits after 5 tries. Unfortunately, at that point upstart notices gdm exited and restarts it.
This is fairly easy to reproduce by doing 'echo "foo" >> /etc/X11/xorg.conf' and rebooting.
It appears with the new gdm, it no longer triggers FailsafeServer after N failed tries. Instead, gdm simply exits after 5 tries. Unfortunately, at that point upstart notices gdm exited and restarts it.
This is fairly easy to reproduce by doing 'echo "foo" >> /etc/X11/xorg.conf' and rebooting.