Public bug reported:

As long as a smart card, such as a YubiKey, is plugged into the device,
the Gnome login screen forces smart card authentication (rather than
e.g. ordinary password authentication) by default with Ubuntu 21.04,
even if it hasn't been configured.

This locks users out of graphical sessions for as long as their smart
card is connected. Some "smart cards" such as e.g. the YubiKey 4N are
meant to be kept around in an USB port and relatively hard (or even
impossible, think epoxy) to remove from there.

For an independent report of this issue, see
https://askubuntu.com/questions/1339157/disable-smartcard-integration-
in-hirsute.

I managed to work around this issue by logging in to a terminal session,
uninstalling libpam-sss and selecting the alternative /etc/pam.d/gdm-
smartcard-sssd-or-password with update-alternatives --config gdm-
smartcard.

** Affects: gdm (Ubuntu)
     Importance: Undecided
         Status: New

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https://bugs.launchpad.net/bugs/1940809

Title:
  Forced smart card auth if one is plugged in on Ubuntu 21.04

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