Ok, looks like enabling composite as workaround does let start xorg
again:

#Section "Extensions"
#     Option "Composite" "Disable"
#EndSection

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which is subscribed to xserver-xorg-video-intel-hwe-16.04 in Ubuntu.
https://bugs.launchpad.net/bugs/1780495

Title:
  Xorg crashes after updating to version
  2:2.99.917+git20171229-1~16.04.1

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