Strange, but the problem was /bin/hostname, which didn't work properly and prevented /usr/bin/xauth from adding the correct "display name", since it uses /etc/hosts to get the IP
What the fsck! Seriously!
/bin/hostname recompiled from a more recent source (Gentoo repo) -> problem solved!
So, it wasn't an Ubunto side problem (laptop with x11), but a Gentoo side problem (remote server).
Strange because it happened on both remote machines { x86/32, ppc32/be } I am using.
Anyway, fixed
Going to re-build for all the other stages4-2024-02 { mips32r2/be, mips32r2/le, hppa2, ... } the most recent
sys-apps/net-tools(<<hostname) source!