Same thing happens for me - this was giving trouble with Update Manager and 
more recently with Administration>Login Screen.
For me, if I type in the password and hit enter, the password field vanishes 
and the authentication dialog becomes unresponsive.
However, if I type in the password and then click on the Authenticate button 
instead of hitting enter, it works fine.

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Authentication dialog freezes after I enter my password
https://bugs.launchpad.net/bugs/444607
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