I got same isuue.
Real problem is not the GDM, but changes in pam.d as any application, which
required authentication, requested entering password twice.
Sollution is to add in /etc/pam.d/common-auth clausule 'try_first_pass':
auth requisite pam_unix.so nullok_secure try_first_pass
I'm not sure, which package messed it up.
** Changed in: gdm (Ubuntu)
Status: Incomplete => Confirmed
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GDM asks for password twice during login
https://bugs.launchpad.net/bugs/262910
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