seems this has to do something with Unity and 3D acceleration.
I can confirm this bug in Ubuntu 16.04.1 LTS (64-bit).

I can log in to Ubuntu 16.04.1 running x11vnc without 3D acceleration.

How you can try this:

1) setup a virtual Ubuntu 16.04.1 in VirtualBox or VMWare (which one does not 
matter)
2) enable 3D acceleration for the guest Ubuntu and install x11vnc
   => you wont be able to log in after reboot or if lock-screen activates
3) disable 3D acceleration for the guest Ubuntu, it will use a fallback graphic 
mode.
   => now you are able to log in with vnc without problems

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https://bugs.launchpad.net/bugs/1287171

Title:
  light-locker breaks x11vnc as service

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