Unity 7 fails to start after intalling 384 driven on Ubuntu 116

I purged my previous nvidia driver and trying to reinstall after kernel 116 upgrade.

When I log in my desktop and cursor appears without any sidebar etc. Keys are not working but I can click on things.

I logged in to terminal with Ctrl+Alt+F1:

after:

cat .xsession-errors

openConnection: connect: No such file or directory
cannot connect to brltty at :0
upstart: unity7 pre-start process (1873) terminated with status 134

I tried reinstalling unity and ubuntu-desktop but nothing changes.

nvidia-smi seems to be working fine.

When I purge the nvidia driver ubuntu starts just fine.