seems this has to do something with Unity and 3D acceleration.
I can confirm this bug in Ubuntu 16.04.1 LTS (64-bit).
I can log in to Ubuntu 16.04.1 running x11vnc without 3D acceleration.
How you can try this:
1) setup a virtual Ubuntu 16.04.1 in VirtualBox or VMWare (which one does not matter)
2) enable 3D acceleration for the guest Ubuntu and install x11vnc
=> you wont be able to log in after reboot or if lock-screen activates
3) disable 3D acceleration for the guest Ubuntu, it will use a fallback graphic mode.
=> now you are able to log in with vnc without problems
seems this has to do something with Unity and 3D acceleration.
I can confirm this bug in Ubuntu 16.04.1 LTS (64-bit).
I can log in to Ubuntu 16.04.1 running x11vnc without 3D acceleration.
How you can try this:
1) setup a virtual Ubuntu 16.04.1 in VirtualBox or VMWare (which one does not matter)
2) enable 3D acceleration for the guest Ubuntu and install x11vnc
=> you wont be able to log in after reboot or if lock-screen activates
3) disable 3D acceleration for the guest Ubuntu, it will use a fallback graphic mode.
=> now you are able to log in with vnc without problems