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/lib/live/config/0085-sddm is in live-config 5.20170112+deb9u1.

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The actual contents of the file can be viewed below.

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#!/bin/sh

## live-config(7) - System Configuration Components
## Copyright (C) 2006-2015 Daniel Baumann <mail@daniel-baumann.ch>
##
## This program comes with ABSOLUTELY NO WARRANTY; for details see COPYING.
## This is free software, and you are welcome to redistribute it
## under certain conditions; see COPYING for details.


#set -e

Cmdline ()
{
	# Reading kernel command line
	for _PARAMETER in ${LIVE_CONFIG_CMDLINE}
	do
		case "${_PARAMETER}" in
			live-config.noautologin|noautologin)
				LIVE_CONFIG_NOAUTOLOGIN="true"
				;;

			live-config.nox11autologin|nox11autologin)
				LIVE_CONFIG_NOX11AUTOLOGIN="true"
				;;

			live-config.username=*|username=*)
				LIVE_USERNAME="${_PARAMETER#*username=}"
				;;
		esac
	done
}

Init ()
{
	# Disables both console and graphical autologin.
	case "${LIVE_CONFIG_NOAUTOLOGIN}" in
		true)
			exit 0
			;;
	esac

	# Disables graphical autologin, no matter what mechanism
	case "${LIVE_CONFIG_NOX11AUTOLOGIN}" in
		true)
			exit 0
			;;
	esac

	# Checking if package is installed or already configured
	if [ ! -e /var/lib/dpkg/info/sddm.list ] || \
	   [ -e /var/lib/live/config/sddm ]
	then
		exit 0
	fi

	echo -n " sddm"
}

Config ()
{
	# autologin
	if [ -n "${LIVE_USERNAME}" ]
	then
		cat > /etc/sddm.conf << EOF
[Autologin]
User=${LIVE_USERNAME}
Session=plasma.desktop
EOF
	fi

	# Avoid xinit
	touch /var/lib/live/config/xinit

	# Creating state file
	touch /var/lib/live/config/sddm
}

Cmdline
Init
Config