sddm disables keyboard

I installed xenial a server initially then added Kubuntu desktop.

Initally, /usr/bin/X was missing - see bug 1563048.

Now sddm starts X okay but the keyboard stops working -- I cannot Ctrl-Alt-F1 out of the login screen, tab doesn't let me move to another field, there is not mousepad response (no pointer is displayed).

If I stop sddm, X gets stopped. Without X running, I can then switch to another terminal.

However, the keyboard LEDs are not working (I do not remember for certain if they were working but I'm pretty sure they were).

ProblemType: Bug
DistroRelease: Ubuntu 16.04
Package: sddm 0.13.0-1ubuntu5
ProcVersionSignature: Ubuntu 4.4.0-22.39-generic 4.4.8
Uname: Linux 4.4.0-22-generic x86_64
ApportVersion: 2.20.1-0ubuntu2
Architecture: amd64
Date: Sun May 15 19:38:21 2016
SourcePackage: sddm
UpgradeStatus: No upgrade log present (probably fresh install)