What size touch screen ?
I've got a 7" here that seemed to work right out of the box, and a 3.5" that took a bit of playing with
And I just downloaded the newest nightly, and installed it, and noticed that there are TWO DIFFERENT desktops
There's the one that you see an option for when you login, and a different one that you get in raspi-config
I just tried the one in raspi, and while it did give me a gui logon screen, nothing I tried would get me logged in. Then I tried the one you see when you first log into the cli, and that worked
What size screen are you using ? The 7" I tried worked first time, I had to remotely install an onscreen keyboard first, but it worked. Except, now I can't login without a bluetooth keyboard to type the username and password
As for the 3.5", well, it's working, but it's not calibrated properly. Gave me a desktop tho. Also can't log into it without a bt keyboard, and even when I do, I can't use it cuz it won't touch where I touch it. Obviously I need to find a different calibration technique, or maybe different drivers