Adding the test on /etc/init/failsafe-x.conf (before calling failsaveXServer) seems to cause X to hang without further explanation, so I ended up adding it to /etc/gdm/failsafeXServer and that did the trick.
Linking a branch with a merge proposal for the fix.
Excellent!, this seemed to fix it, thanks Martin.
Adding the test on /etc/init/ failsafe- x.conf (before calling failsaveXServer) seems to cause X to hang without further explanation, so I ended up adding it to /etc/gdm/ failsafeXServer and that did the trick.
Linking a branch with a merge proposal for the fix.