I discovered the culprit…
sudo vi /home/rreaves2/.xsessionrc
simply removing that file allows for me to log back in locally without issue.
sudo rm /home/rreaves2/.xsessionrc
Figured it out by copying my profile before and after I logged in with xrdp and the using diff -q against the 2 copies I had created.
The real cause of this issue is because I use this script I believe and that the startwm file was creating that xsessionrc. I have commented it out now.
#Improved Look n Feel Method
# cat <<EOF > ~/.xsessionrc
# export GNOME_SHELL_SESSION_MODE=ubuntu
# export XDG_CURRENT_DESKTOP=ubuntu:GNOME
# export XDG_CONFIG_DIRS=/etc/xdg/xdg-ubuntu:/etc/xdg
bottom of the file looks like this - I added budgie-desktop there.
if test -r /etc/profile; then
# test -x /etc/X11/Xsession && exec /etc/X11/Xsession
#exec /bin/sh /etc/X11/Xsession