I don't think that can be, I had no display manager in my test.
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https://bugs.launchpad.net/bugs/2061850
Title:
Can't authenticate in TTY after installing authd, but
The issue had been identified to be in GDM.
** Package changed: authd (Ubuntu) => gdm3 (Ubuntu)
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https://bugs.launchpad.net/bugs/2061850
Title:
Can't authenticate in