I can confirm this behavior. Below are more specific steps to reproduce
it.
1. Open Users and Groups
2. Select your user and choose properties
3. Click change password
After following through with the steps to change your password here the
/etc/shadow file shows the change
4. Click "OK" to close out of the "Account 'username' Properties" dialog
box.
After you authenticate with the dialog box that opens, your password
will revert to the original. The /etc/shadow file is rewritten with the
original hash.
NOTE: If you click "Cancel" instead of "OK" to leave the "Account
'username' Properties" dialog box the /etc/shadow file does not revert
to the original.
** Changed in: gnome-system-tools (Ubuntu)
Status: New => Confirmed
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Cannot change password with users-admin (gnome-system-tools)
https://bugs.launchpad.net/bugs/490093
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