lxc 3.0.2 - cannot create root password in privileged container

[km]

Prior filing this as potential bug help was sought but did not yield a remedy

https://discuss.linuxcontainers.org/t/3-0-2-bug-cannot-create-root-password-in-privileged-container/3425

host - ubuntu cosmic with kernel 4.18.0-12 / systemd 239-7 / apparmor 2.12

Whilst there is no issue with creating a root password via lxc-attach and passwd in an unprivileged container it is however not possible to create a password the same way for a privileged container (tried centos 7 and ubuntu cosmic).

Error reported from within the containers:

passwd: System error
passwd: Authentication token manipulation error

Error reported at the host:

passwd: PAM audit_log_acct_message() failed: Operation not permitted

Next tried with:

chroot /container/path/rootfs passwd

but that produced the same error.

Next tried with:

lxc.cap.keep = CAP_AUDIT_WRITE

but the container would not boot.

Next tried with:

lxc.apparmor.profile = unconfined

but no remedy.

Next switched the kernel to 4.19.7 but no dice either.