Experienced this with Ubuntu 16.04 after using my work desktop station
as a temporary server with vagrant servers and using gnome-shell as my
DE for about a month.  Nautilus started to crash with the error:

cannot open display: :0.0
Maximum number of clients reached

Restarting gdm3 didn't work either.  Killed all users, and run startx as
root launched the gnome-shell and nautilus worked, but I could not make
gdm3 start as gdm3 user again.

** Changed in: xorg (Ubuntu)
       Status: Invalid => Confirmed

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which is subscribed to xorg in Ubuntu.
https://bugs.launchpad.net/bugs/1518411

Title:
  "Maximum number of clients reached", new in Ubuntu 15.10

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