Based on the discussion from https://bugs.launchpad.net/ubuntu/+source/lightdm/+bug/1309535, libpam-kwallet errors appear to be a non-issue in this case. I am still unsure as to why lightdm and gdm are failing but lxdm succeeds albeit with a now-crippled desktop environment. The gdm failure messages appeared to be much less helpful, something to the effect of: "CRITICAL: We failed, but the fail whale is dead".
Based on the discussion from https:/ /bugs.launchpad .net/ubuntu/ +source/ lightdm/ +bug/1309535, libpam-kwallet errors appear to be a non-issue in this case. I am still unsure as to why lightdm and gdm are failing but lxdm succeeds albeit with a now-crippled desktop environment. The gdm failure messages appeared to be much less helpful, something to the effect of: "CRITICAL: We failed, but the fail whale is dead".