I just had this issue on 8.10.

To clarify:  As a result of creating the user "admin" in the users-admin
program, the admin group in /etc/group gets replaced by a new admin
group with a new gid.  All of the users originally part of the admin
group are obviously no longer a part of the admin group.
As a quick fix I ended up editing the /etc/group file using the only
user I could (the newly created admin user) and adding "admin" and other
administration users back into the admin group.

When logged in as admin before I had corrected /etc/group, I was getting
an "unexpected error" in the users-admin program when I tried to
"Unlock" it.  Also the "Add/Remove..." menu item instantly disappeared
as soon as I added it using the menu editor.  Both of these issues were
gone as soon as I put the new admin user in the admin group in
/etc/group.

As suggested above.  To fix this issue a simple check could be performed
in the users-admin program to make sure a group doesn't exist already
before it is created in /etc/group.

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Creating user with username 'admin' hoses admin group, sudo config
https://bugs.launchpad.net/bugs/236305
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