This was an intentional change:
http://lists.freedesktop.org/archives/lightdm/2014-August/000661.html
>From the NEWS file:
Overview of changes in lightdm 1.11.7
* Use logind to provide the list of seats to use. Deprecate the old method
of manually defining seats.
* Add --show-config option that shows combined configuration.
* Drop the surfaceflinger seat type. This was a temporary solution while
Ubuntu Phone was migrating to Mir.
** Changed in: lightdm (Ubuntu)
Status: Confirmed => Invalid
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https://bugs.launchpad.net/bugs/1406140
Title:
lightdm 1.12 breaks config semantics for multiple X servers
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