My guess is that something related to the headless setup you had changed during upgrade - likely some package got obsoleted and removed. Then you got some default behaviour from the replacement package along with the rest of the setup.
If you don't get the help needed to resolve this here, you should also post in askubuntu.com.
This sounds plausible. I have seen a few guides for headless use suggesting disabling the built-in remote desktop feature and setting up xrdp, xvnc or related and then trying to fixup that session.