Comment 5 for bug 1335135

It also affects Kubuntu Vivid. However, there is a twist to it, which might be true of other affected systems as well.

I do have to enter kdewallet password after I log in through SDDM - pam-kwallet does not work in that case. But if, before I log in through SDDM, I login through one of the virtual consoles into the text mode (hit Ctrl+Alt+F1 and enter my credentials), and login through SDDM afterwards, I do not have to enter kdewallet password - pam-kwallet works in that case.

Now, I noticed about the original reporter, that he uses encrypted home directory (EcryptfsInUse: Yes). I do use it as well. I created a user without encrypted home directory, and for that user pam-kwallet works as expected.

So my guess is that the bug is related somehow to the fact that the home directory is encrypted. May it be that pam-kwallet tries to communicate the password to kwallet _before_ the home directory is mounted, and therefore - fails?

I see there are people on other distributions testing the same hypothesis: https://www.redhat.com/archives/pam-list/2014-October/msg00000.html

By the way, even if I have the pam-kwallet working on the unencrypted home dir, I still have the "zombie" kwalletd process.