I have a Raspberry Pi 2 B with a fresh install of the latest Raspbian.
I had this trouble before, started researching it, rebooted a couple of times and then the problem seemed to resolve itself. It happened again though and I will need this device to be able to restart and auto login headlessly in the future, so I need to fix this.
Everything seems successful and at the end of the long list of code messages that run on start-up it says
Show Plymouth Boot Screen...
and the next screen (of death) shows an image saying
Welcome to the Raspberry Pi Desktop (logo image) Powered by Raspberry Pi"
under that image it says
then has a flashing cursor. No keyboard or mouse input is accepted.