Hi,
I'm closing this bug, as it is not caused by xdm. According to the
debconf information in the report, the active display manager was gdm3
(shared/default-x-display-manager: gdm3), and you saw the same
behaviour with kdm and gdm.
xdm itself always starts the local X server on a fixed virtual
terminal: Debian's default /etc/X11/xdm/Xservers contains
"vt7" on the :0 line, so restarting the server after a logout reuses
vt7. Moving between tty7/tty8/tty9 was a property of the dynamic VT
allocation in gdm3/kdm (or of the X server when no vtN option is
given), and those versions are long gone from Debian.
Thanks,
Boyuan