I have a similar case. Let me know if you want me to file a new bug and
where to file it.

Test Case
=========
Install Ubuntu 18.10 in VirtualBox. Restart
Log in. Open Settings > Details > Users. Unlock then turn on Automatic Login.
Restart.

I get the similar corrupted display. My screen resolution is locked to
1024x768.

The workaround for the corruption is to switch to a virtual terminal and
back, but I still end up have screen drawing issues.

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Packages, which is subscribed to xorg-server in Ubuntu.
https://bugs.launchpad.net/bugs/1796822

Title:
  Desktop live cd boots corrupted screen in Virtualbox on Bionic

Status in initramfs-tools package in Ubuntu:
  Fix Released
Status in xorg-server package in Ubuntu:
  Confirmed
Status in initramfs-tools source package in Cosmic:
  Fix Released
Status in xorg-server source package in Cosmic:
  Confirmed

Bug description:
  On a Bionic host running the standard archive version of Virtualbox
  and the daily ISO of Cosmic, the live session starts with a corrupted
  graphical display, as can be seen here:

  https://imgur.com/a/rkTId4S

  (also attached)

  Switching VTs to 2 and back to 1 clears the display and things work
  again.

To manage notifications about this bug go to:
https://bugs.launchpad.net/ubuntu/+source/initramfs-tools/+bug/1796822/+subscriptions

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