Comment 5 for bug 444067

Just because you have a particular issue doesn't mean that everybody who tries your instructions are guaranteed to experience the same issue that you're having.

Your instructions don't work anyway - your use of usermod is syntactically incorrect, and your steps don't actually create a home folder for the new user, so the users account doesn't work anyway. If I tell useradd to create the home folder, then I have no such issues with the new user account