Maybe I got it!
I had to reinstall (yet again!) the ubuntu-desktop package:

Note that I had to **install** it and it wasn't saying "already install, he 
just installed it has if it did not have it  (and I believe it wasn't having 
it)... see attachment to look at what had been installed
ii  ubuntu-desktop 1.193 

After rebot, no complaint about graphics card, GNOME session available.

So I believe there is something in kernel updates messing with ubuntu-desktop 
package in a strange but reproducible way,
should I change the title to this bug?

** Attachment added: "ubuntu-desktop_install"
   http://launchpadlibrarian.net/42665481/ubuntu-desktop_install

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lucid lynx - login screen stuck in a loop - SYSTEM BROKEN
https://bugs.launchpad.net/bugs/516520
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