This is probably unrelated to the original bug, but I found that
installing gdm and setting it as the default login manager, I was then
able to successfully log in (and the ecryptfs home dir was successfully
mounted). Not too surprising, since lightdm is still under heavy
development from what I've seen.

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https://bugs.launchpad.net/bugs/820460

Title:
  User not created with encrypted home partition: user-setup exit code
  32

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