Just upgraded from 14.04 to 16.04.1 and found this (and the workaround)
via googling.

I drop my laptop on a dock with two vertically oriented (rotated to
portrait) monitors. This was working fine before, now it lights them up
without the rotation. Rotating them manually via System Settings ->
Displays, undocking and docking again reverts to the wrong (landscape)
orientation.

The ~/.config/monitors.xml looks fine but seems to be ignored.
Reloading the settings with

  killall unity-settings-daemon

gives me the correct orientation, which is read from the monitor.xml
(editing the file by hand and killing u-s-d accepts whatever changes I
make), it just doesn't get triggered on docking changes.

That's the workaround for now: kill u-s-d every time I dock to the workplace.
It would be nice for patchlvl 1 LTS upgrades to not break such basic stuff.

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https://bugs.launchpad.net/bugs/1578243

Title:
  Screen configuration is not preserved when logging out and logging
  back in

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