We are seeing the same issue with essentially the same setup (NIS for
accounts with nsswitch in compat mode, Kerberos for authentication).

We see the same pam_systemd debug message when attempting to log in as 
regular/remote user:
pam_systemd(sshd:session): Failed to create session: No such process

Naturally loginctl doesn't report the session.  No /run/user/$UID
directory gets created, and additionally, trying to run "systemctl
--user" spits out:  Trying to run as user instance, but $XDG_RUNTIME_DIR
is not set.  After manually setting this variable, we see the familiar
"Failed to connect to bus: No such file or directory"

Strangely, this problem is not present on some of our slightly older
20.04 VMs in the fleet.  The working VMs are using systemd version
245.4-4ubuntu3.2

We noticed this behavior yesterday on 245.4-4ubuntu3.4, and the problem
persists having upgraded to 245.4-4ubuntu3.6.  This definitely looks
like a regression, but I'm not sure which package is at fault or how to
debug/pinpoint further.

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https://bugs.launchpad.net/bugs/1915502

Title:
  "systemd --user" fails to start for non-local users

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