This bug title is worded incorrectly. More accurate would be:

Changing user setting in User Accounts from "Login without password" to
"Disable this account" does not remove the user from the nopasswdlogin
group.

The user remains in the nopasswdlogin group only when going from "Login
without password" to "Disable this account". In this case, lightdm will
remain set to allow login without a password.

After setting a password, the user is properly removed from
nopasswdlogin and lightdm behaves correctly, so setting a password in
User Settings and then disabling the account in User Settings avoids the
bug.

I confirmed this in 12.04.4, 13.10, and 14.04 Beta 2.

See: http://askubuntu.com/questions/442641/how-to-disable-a
-passwordless-account/442995#442995

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https://bugs.launchpad.net/bugs/1169054

Title:
  Disabling then Re-Enabling login without password does remove user
  from nopasswdlogin group

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