Bug#848149: nvidia-driver: System error (GDM/Gnome) error after installing nvidia-driver and rebooting

[TheBrokenGod]

Package: nvidia-driver
Version: 340.96-1
Severity: critical
Justification: breaks the whole system

Dear Maintainer,

after checking that my graphic card is supported by the proprietary graphic
driver and installing it through the nvidia-driver package, I am no longer able
to login. Instead a low-resolution fullscreen dialog saying that something went
wrong appears. With LightDM I can login to Xfce but the resolution is still
very low and the panels are missing. I tried to purge nvidia-driver but that
didn't work, I had to reinstall the system. I could break the system again and
provide some log files if useful.

nvidia-detect output:
Detected NVIDIA GPUs:
01:00.0 VGA compatible controller [0300]: NVIDIA Corporation GK107 [GeForce GT
740] [10de:0fc8] (rev a1)
Your card is supported by the default drivers.
It is recommended to install the
    nvidia-driver
package.



-- System Information:
Debian Release: 8.6
  APT prefers stable-updates
  APT policy: (500, 'stable-updates'), (500, 'stable')
Architecture: amd64 (x86_64)

Kernel: Linux 3.16.0-4-amd64 (SMP w/4 CPU cores)
Locale: LANG=en_GB.UTF-8, LC_CTYPE=en_GB.UTF-8 (charmap=UTF-8)
Shell: /bin/sh linked to /bin/dash
Init: systemd (via /run/systemd/system)