This bug was fixed in the package initramfs-tools - 0.131ubuntu14

---------------
initramfs-tools (0.131ubuntu14) cosmic; urgency=medium

  * hooks/framebuffer: manual_add_modules vboxvideo to support graphical
    boot in VirtualBox. LP: #1796822

 -- Dimitri John Ledkov <x...@ubuntu.com>  Wed, 10 Oct 2018 11:06:00
+0100

** Changed in: initramfs-tools (Ubuntu Cosmic)
       Status: Fix Committed => Fix Released

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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.

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