OK I re-enabled gdm using 'System --> Administration --> Services' and
now it starts up automatically when my system boots up. This gives me a
workaround so that my admin utilities now allow me to authenticate with
the 'Unlock' button. However, I would still like to know how to fix the
bug without using gdm.

Thanks again for all your help!

-- 
'Unlock' button in admin utilities greyed out
https://bugs.launchpad.net/bugs/231246
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