Apparently from time to time the contents of /root/.profile are for some reason changed within the Ubuntu 16.04 installation.
The default looks like this:
# ~/.profile: executed by Bourne-compatible login shells. if [ "$BASH" ]; then if [ -f ~/.bashrc ]; then . ~/.bashrc fi fi mesg n
Which doesn’t work well together with X2Go interface. Basically you need to amend the last line “mesg n” with following:
tty -s && mesg n
Reboot the machine and profit 🙂