I can confirm this behavior. This might also have to do with a PolicyKit
setting, but I can't be sure on that. The problem is reproducible every
time however. For example, try adding a user and closing. When you
return, it will seem as if nothing happened. The same happens for
removing users and groups as well.
** Changed in: gnome-system-tools (Ubuntu)
Status: New => Confirmed
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hardy users-admin does not write to /etc/passwd or /etc/group
https://bugs.launchpad.net/bugs/192313
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