Yes, it works after applying the latest updates. There was no update to
xorg-xserver-video-ati though, so it must have been a bug somewhere
else. I had too many updates at once, cannot guess which one could have
fixed this issue.

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[M7 LW] [RV250] resolution incorrectly detected on various radeon cards
https://bugs.launchpad.net/bugs/645377
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which is subscribed to xserver-xorg-video-ati in ubuntu.

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