I tried to reproduce this using:
apt-get install libcap2-bin
pam-auth-update
passwd
but could not. When running pam-auth-update, did you accept the default
options (which for me was both options checked)?
** Changed in: libcap2 (Ubuntu)
Status: New => Incomplete
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https://bugs.launchpad.net/bugs/744877
Title:
'passwd' doesn't change user's password after installing libcap2
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