Got the same problem. It looks like the problem is in the kernel 4.15
with Canonical patches. Vanilla 4.15, built from source, has no problem
with useradd. Ubuntu 16.04 LTS kernel 4.13 generic, built from source,
is also  ok. I've spent plenty of time trying to make it work.

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https://bugs.launchpad.net/bugs/1769301

Title:
  resetting /proc/thread-self/attr/fscreate results in 'Invalid
  Argument'

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