"The password you use to log in to your computer no longer matches that of your login keyring." error after upgrade

[Vadim Peretokin]

I upgraded network-manager-gnome today on 12.04 LTS to 0.9.4.1-0ubuntu2.3, restarted, and got the "The password you use to log in to your computer no longer matches that of your login keyring." error from the keyring.

I did not change my password, my login password is still the same (and it works) and sudo still accepts my password. The dialog however keeps saying that the password is wrong, never accepts it, never goes away, and keeps the keyboard focus stolen at all times.

ProblemType: Bug
DistroRelease: Ubuntu 12.04
Package: network-manager-gnome 0.9.4.1-0ubuntu2.3
ProcVersionSignature: Ubuntu 3.2.0-41.66-generic 3.2.42
Uname: Linux 3.2.0-41-generic x86_64
NonfreeKernelModules: nvidia
ApportVersion: 2.0.1-0ubuntu17.2
Architecture: amd64
CRDA: Error: command ['iw', 'reg', 'get'] failed with exit code 1: nl80211 not found.
CheckboxSubmission: f14e403bdb8f84f871603c9cde62a6ec
CheckboxSystem: 4ed15c40009aa6f7770f606350a390a2
Date: Sat May 4 15:50:51 2013
EcryptfsInUse: Yes
IfupdownConfig:
 auto lo
 iface lo inet loopback
InstallationMedia: Ubuntu 11.10 "Oneiric Ocelot" - Release amd64 (20111012)
IpRoute:
 default via 10.1.1.1 dev eth0 proto static
 10.0.3.0/24 dev lxcbr0 proto kernel scope link src 10.0.3.1
 10.1.1.0/24 dev eth0 proto kernel scope link src 10.1.1.2 metric 1
 169.254.0.0/16 dev eth0 scope link metric 1000
 192.168.122.0/24 dev virbr0 proto kernel scope link src 192.168.122.1
MarkForUpload: True
NetworkManager.state:
 [main]
 NetworkingEnabled=true
 WirelessEnabled=true
 WWANEnabled=true
 WimaxEnabled=true
ProcEnviron:
 LANGUAGE=en_AU:en
 TERM=xterm
 PATH=(custom, no user)
 LANG=en_AU.UTF-8
 SHELL=/bin/bash
RfKill:

SourcePackage: network-manager-applet
UpgradeStatus: Upgraded to precise on 2012-04-26 (372 days ago)
nmcli-con:
 NAME UUID TYPE TIMESTAMP TIMESTAMP-REAL AUTOCONNECT READONLY DBUS-PATH
 Wired connection 1 5676b4ed-5612-4a25-9013-269693381fa4 802-3-ethernet 1367646597 Sat 04 May 2013 15:49:57 EST yes no /org/freedesktop/NetworkManager/Settings/0
nmcli-dev:
 DEVICE TYPE STATE DBUS-PATH
 eth0 802-3-ethernet connected /org/freedesktop/NetworkManager/Devices/0
nmcli-nm:
 RUNNING VERSION STATE NET-ENABLED WIFI-HARDWARE WIFI WWAN-HARDWARE WWAN
 running 0.9.4.0 connected enabled enabled enabled enabled disabled

[Launchpad Janitor (janitor)]

Status changed to 'Confirmed' because the bug affects multiple users.