*** This bug is a security vulnerability ***

You have been subscribed to a public security bug by Marc Deslauriers 
(mdeslaur):

The root password (if specified) and initial user account password
(required) are encrypted using an (insecure) MD5 hash. The resulting
kickstart file will build virtual machines that store the MD5 hashed
password in /etc/shadow for the root and/or initial user.

Currently Ubuntu uses SHA512 for storing hashed passwords in
/etc/shadow, but MD5 still works for the sake of backwards
compatibility. Using MD5 hashes for any passwords is highly insecure and
should be avoided.

1) The release of Ubuntu you are using, via 'lsb_release -rd' or System
-> About Ubuntu

$ lsb_release -rd
Description:    Ubuntu 18.10
Release:        18.10

2) The version of the package you are using, via 'apt-cache policy
pkgname' or by checking in Software Center

$ apt-cache policy system-config-kickstart
system-config-kickstart:
  Installed: 2.5.20-0ubuntu25
  Candidate: 2.5.20-0ubuntu25
  Version table:
 *** 2.5.20-0ubuntu25 500
        500 http://us.archive.ubuntu.com/ubuntu bionic/universe amd64 Packages
        500 http://us.archive.ubuntu.com/ubuntu bionic/universe i386 Packages
        100 /var/lib/dpkg/status


3) What you expected to happen

I expected system-config-kickstart to use SHA512 for storing hashed
passwords. (Hash starts with "$6$".)

4) What happened instead

system-config-kickstart used MD5 for storing hashed passwords. (Hash
starts with "$1$".)

** Affects: system-config-kickstart (Ubuntu)
     Importance: Undecided
         Status: New

-- 
Hashed passwords stored as MD5 hashes in /etc/shadow
https://bugs.launchpad.net/bugs/1807479
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