I had the same problem. Somehow, the GUI fails to request the admin
password and doesn't create the user.

Try from the terminal with:
```sudo useradd -m new_user_name```
This will create a new user with a home directory.
Once the user has been created you can change al other parameters, such as 
password or icon from the User Manager GUI.

I hope it helps. It worked for me :-)

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https://bugs.launchpad.net/bugs/1883357

Title:
  Can't create new user in Kubuntu 20.04

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