Here is what is causing the error:
Setting up xserver-xorg (1:7.3+10ubuntu10.2) ...^M
No protocol specified^M
Gtk-WARNING **: cannot open display: :0.0 at
/usr/share/perl5/Debconf/FrontEnd/Gnome.pm line 60.^M
dpkg: error processing xserver-xorg (--configure):^M
subprocess post-installation script returned error exit status 1^M
** Changed in: debconf (Ubuntu)
Sourcepackagename: ubuntu-meta => debconf
Status: New => Triaged
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package ubuntu-desktop 1.102 failed to install/upgrade: dependency problems -
leaving unconfigured
https://bugs.launchpad.net/bugs/256454
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