Installed newest Kali Linux 2.0 (x64) on a new Touchscreen Laptop (an ASUStek TP500LA x64. Found 2 other cases with this problem occurring in touchscreen laptops (?all manufactured by asus?). I believe this to be a relatively new bug as all forum posts about it are from 2016...
Bug: Screen, cursor, and screen content all inverted/flipped and out of sync with one another almost immediately upon boot (grub is fine, bug arises at login screen). For example, moving the mouse up and left will move onscreen cursor down and right, entire screen is flipped upside down/inverted by default.
So even though the problem shouldn't exist, xrandr should fix, right?
After tinkering with xrandr orientations:
"xrandr -o normal": Should work in theory, does for some but not for all, in my case the screen stayed inverted as well as the cursor. Moving on.
"xrandr -o inverted": Flipped the screen back to normal! However! From here any actual content onscreen doesn't match up with what is shown (for example, clicking on terminal button onscreen doesn't do anything, you have to go to where the button would be onscreen as if the screen were still inverted and then guess where it would be and click). Oh, and the mouse cursor is still flipped upside down and inverted direction-wise. (Moving physical mouse left makes cursor go right and etc)
apt updated upgraded and installed successfully, problem still here, unable to get rid of it...even tinkering with xrandr doesnt solve the problem well enough, makes Kali completely unusable on touchscreen laptops unfortunately...so I'll have to wait until its fixed to resume using my beloved Kali again. (had kali on a desktop around a year ago, worked 100% fine)
I assume the problem originates within xrandr being confused about the added screen hardware (10 point Multi-Touch touch screen) as when you physically touch the screen sometimes the display will flip back to normal all of a sudden and then immediately go back regardless of whether you keep touching it. Therefore I marked as a tool upgrade and not a package glitch, although its present natively. Affects a relatively small portion of users as most people have Kali installed on a desktop, and the portion that have laptops most likely don't have touchscreen hardware, and so marked as normal priority. But who knows, it could be another factor entirely, the common denominator among people experiencing the bug seems to be certain touchscreen laptop models. (2 of which are made by ASUS). Known affected Model Numbers: TP500LA and TL500LN.