1) Any idea what's responsible?

2) From what I can see the issue isn't just startup.  If you see my
previous email, it looks like the notifyd is crashing for some reason.

Maybe, xfce4-notifyd crashes on startup due to not set DISPLAY environment variable?

Please, check for DISPLAY using: dbus-update-activation-environment --verbose --all

If not, make sure /etc/X11/xinit/xinitrc.d/50-systemd-user.sh gets sourced on startup of Xorg in some way.

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