I tried to reproduce this but it didn't fail for me, however a quick search 
seems to indicate this might be a problem not with systemd, but with pam, e.g.:
https://github.com/proot-me/PRoot/issues/156#issuecomment-735011266

As you're using 18.04, which includes pam 1.1.8, the problem may be
fixed for you if you try on a 20.04 system, which includes pam 1.3.1.

If that works, then there is likely some patch needed to be backported
to pam in bionic.

** Bug watch added: github.com/proot-me/PRoot/issues #156
   https://github.com/proot-me/PRoot/issues/156

** Package changed: systemd (Ubuntu) => pam (Ubuntu)

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https://bugs.launchpad.net/bugs/1913629

Title:
  adduser: \/usr/bin/chfn -f systemd Time Synchronization systemd-
  timesync' returned error code 1. Exiting.`

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