It seems that due to the use of a crypted password SetPassword() in the AccountsService DBus API cannot be made to work with remote users.
In addition the implementation of SetPassword() in accounts-daemon uses usermod to change the password. It should instead go through the PAM stack to change the password.
In addition to working with non-local user accounts, this will make it respect administrators preferences for password changing.
This is related to bug #55000
see bug 51833 comment 1
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