The issue was lightdm was calling initgroups after pam_setcred had been
called - thus any group changes in pam_setcred were not retained. This
is fixed in lightdm 1.1.9.
** Changed in: lightdm (Ubuntu)
Status: Confirmed => Fix Committed
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https://bugs.launchpad.net/bugs/880104
Title:
Using pam_group results in: pam_group(lightdm:setcred): unable to set
the group membership for user: operation not permitted
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