Can confirm this bug persisted on my Thinkpad L430 with Xenial 16.04.1
with kernel 4.4.0.81. However, it was fixed by manually updating the
kernel to the latest version (4.8.0.58) by running

sudo apt-get install --install-recommends xserver-xorg-hwe-16.04


Now, I don't see the flicker anymore. This thread was quite useful for the 
suggestions regarding updating the kernel.

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which is subscribed to xserver-xorg-video-intel in Ubuntu.
https://bugs.launchpad.net/bugs/1531224

Title:
  lightdm-gtk-greeter flickers once little after lightdm starts

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https://bugs.launchpad.net/lightdm-gtk-greeter/+bug/1531224/+subscriptions

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