Comment 4 for bug 1675453

The reason for this happening is that apparently this ubuntu-server image is booting with vt.handoff=7 while in systemd's logind we're only using the default number of configured tty's (i.e. 6). So plymouth is running, doing it's thing and then switches to tty7 which is not enabled. This can be confirmed by either increasing logind's number of tty's or by enforcing vt.handoff=1.

Need to look into how we had this configured in earlier versions. I'd opt for restoring vt.handoff=1 in this case.