Public bug reported:
See bug #1556516 for details and a patch file to fix the problem.
I filed that directly, before I discovered ubuntu-bug.
This bug occurs for me using the mate desktop.
ProblemType: Bug
DistroRelease: Ubuntu 16.04
Package: lightdm 1.17.6-0ubuntu1
ProcVersionSignature: Ubuntu 4.4.0-12.28-generic 4.4.4
Uname: Linux 4.4.0-12-generic x86_64
NonfreeKernelModules: nvidia_uvm nvidia_modeset nvidia
ApportVersion: 2.20-0ubuntu3
Architecture: amd64
CurrentDesktop: MATE
Date: Sat Mar 19 12:31:19 2016
InstallationDate: Installed on 2016-03-08 (11 days ago)
InstallationMedia: Ubuntu-MATE 16.04 LTS "Xenial Xerus" - Alpha amd64 (20160224)
SourcePackage: lightdm
UpgradeStatus: No upgrade log present (probably fresh install)
** Affects: lightdm (Ubuntu)
Importance: Undecided
Status: New
** Tags: amd64 apport-bug xenial
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https://bugs.launchpad.net/bugs/1559513
Title:
passwd and group entries are not removed on logout from a guest
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