This might be a silly question, but did you try clicking the "Unlock"
button, as seen in your screenshot?  Since the addition of policykit in
this version of Ubuntu, this dialog box is not supposed to prompt for
your password when it opens - it essential opens for you as if you were
a non-administrator by default.  To use your administrative privileges,
click the unlock button, enter your password, and it will un-grey the
other buttons.  The Network configuration utility works the same way
now.

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Users and Groups dialog does not allow addition of new user
https://bugs.launchpad.net/bugs/198583
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