The workaround I used to fix the original problem as stated by the
person who opened this ticket was to do the following:

chmod ug+s /usr/lib/xorg/Xorg

It seems in Ubuntu 14.04 the Xorg xserver binary has permissions of:

-rwsr-sr-x 1 root root 10192 Dec  9  2014 /usr/bin/X

so by running the above chmod command on the 16.10 (what I have
installed) installed xserver binary does indeed fix the original
poster's issue.

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https://bugs.launchpad.net/bugs/1562219

Title:
  Unprivileged xinit wont start in unallocated vt

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