Not sure exactly what's happening, seems like xsession just dies. Nothing in .xsession-errors. Tried deleting ~/.Xauthority, no difference.
Once I switch to non-hardened 6.8.1 I could log in normally.
Anyone have any idea why 6.7.9-hardened won't work? I couldn't really find any clues when running tail -f /var/log/*.log while logging in.
Well, after upgrading to 6.7.11-hardened it's working again.