This bug was fixed in the package lightdm - 1.17.3-0ubuntu1

---------------
lightdm (1.17.3-0ubuntu1) xenial; urgency=medium

  * New upstream release:
    - Don't enable the hardware cursor in Unity System Compositor anymore.
      Unity 8 now correctly provides its own cursor and other shells should too
      (LP: #1517615)
  * debian/guest-session.profile:
    - Fix guest session dialog sleep (LP: #1526004)

 -- Robert Ancell <[email protected]>  Thu, 17 Dec 2015
13:12:24 +1300

** Changed in: lightdm (Ubuntu)
       Status: Fix Committed => Fix Released

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https://bugs.launchpad.net/bugs/1517615

Title:
  Unity System Compositor --enable-hardware-cursor=true option no longer
  required.

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