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passwd: User not known to the underlying authentication moduleIt happened to me in Arch.
So it seems like some old data were left on the box. The new user was auto logged in, but I always got that annoying warning. That is an indication that something is wrong
 (even if everything works).So to fix it, I simply re-installed pam (rather than looking for corrupted files in /etc/pam.d/).
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sudo pacman -S pamPAM stands for Pluggable Authentication Modules and provides dynamic authentication support for applications and services in a Linux system.
That took care of it