It fails to find a mouse. It then asks what mouse - I picked 'none'. It then fails to start X. A text mode install works but also fails to set up X11 correctly.
When X fails to start, does it fall back to text mode or does the install exit abnormally? What I'm seeing on my test machine is that the installer just crashes. Maybe we shouldn't even start the X server if the mouse is not found.
In my case it tries to run X a few times then aborts politely. It seems that at the point it aborts nicely it should have reverted to text mode even if it did try and start X
Yes, it should fall back to text mode. There is code to do that...I'm not sure why it doesn't fall back to text mode. I will investigate further.
*** This bug has been marked as a duplicate of 34654 ***