Hi, can you please try to install in the "host" the xserver-xorg-legacy package?
also, please try to enable proposed pocket and give an apt-get dist-upgrade.

thanks

** Changed in: virtualbox (Ubuntu)
       Status: Confirmed => Incomplete

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https://bugs.launchpad.net/bugs/1574316

Title:
  Defective display when booting from 16.04 LiveCD (Ubuntu and Xubuntu)
  in Virtualbox

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