Uninstalling gnome-screensaver solves the issue. Obviously you lose the
screensaving functionality, but you can switch users with the fast user
switch applet. When password is needed GDM asks for it, not the gnome-
screensaver locked screen.
** Changed in: gnome-screensaver (Ubuntu)
Status: New => Confirmed
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Can't unlock screen when using a password-less account
https://bugs.launchpad.net/bugs/589299
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