I've selected the most likely packages to be involved, based on a guess.
Without knowing how the user attempted to set their password though,
this is going to be pretty impossible to track down.

/etc/passwd hasn't had passwords stored in it by default for something
like 25 years. My best guess at the moment is some vastly inappropriate
tool was used somewhere along the way (with suspicion leaning towards
web-based 'consoles').

If you can figure out how this happened (or better yet, tell us how to
recreate it), please do report back and mark the bug New again.

Thanks

** Information type changed from Private Security to Public Security

** Also affects: pam (Ubuntu)
   Importance: Undecided
       Status: New

** Also affects: shadow (Ubuntu)
   Importance: Undecided
       Status: New

** Changed in: base-passwd (Ubuntu)
       Status: New => Incomplete

** Changed in: pam (Ubuntu)
       Status: New => Incomplete

** Changed in: shadow (Ubuntu)
       Status: New => Incomplete

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You received this bug notification because you are a member of Ubuntu
Touch seeded packages, which is subscribed to base-passwd in Ubuntu.
https://bugs.launchpad.net/bugs/1851300

Title:
  Xubuntu 18.04 passwd file in etc displays passwd unencrypted

Status in base-passwd package in Ubuntu:
  Incomplete
Status in pam package in Ubuntu:
  Incomplete
Status in shadow package in Ubuntu:
  Incomplete

Bug description:
  Hello,

  I have a workshop where I provide mostly Ubuntu community editions in
  computers and help people coming with computers already setup with a
  *buntu version. A lady came to me as she couldn't master her computer,
  (there is someone in town who installs Ubuntu editions without
  teaching his clients how to deal with their machines).

  She has an Ubuntu Xfce (Xubuntu) 18.04.x which is what she currently
  uses, especially as she doesn't know how to boot to the othe OS. :s

  So I chrooted from a live to recreate her Xubuntu user passwd, and oh
  surprise! The /etc/passwd file was showing her password in plain text,
  unencrypted. (I could read it easily, it was her family name!).

  I have not had the time to dig further, check other editions and
  versions exept the ones I use, however I think, as it has happend in
  the paste, the persons in charge should look into it and check all
  recent Ubuntu and community versions editions (if relevant).

  Thanks for your work!

  Best regards,
  Mélodie

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