Activating EFI Boot on Virtualbox solves the issue for me.
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https://bugs.launchpad.net/bugs/1574316
Title:
Defective display when booting from 16.04 LiveCD (Ubuntu and Xubuntu)
in Vir
For what it's worth, I'm also observing this bug on my Debian Jessie
system with Virtualbox 5.0.20.
After I turned on 3D emulation the language selection menu and boot
splash worked fine, but after Xfce is loaded I can only see a corrupted
portion of the panel.
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