Ah, figured it out. Turns out a 3rd party package (not in the Ubuntu
repos) had added a line for its own PAM module into the configuration,
but with incorrect arguments. Now that's cleared up and things are
working normally.
And now I have a clue about how PAM works, yay!
** Changed in: pam (Ubuntu)
Status: Confirmed => Invalid
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GDM asks for password twice during login
https://bugs.launchpad.net/bugs/262910
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