Comment 2 for bug 1412261

verified the issue, it failed if the user did not assign default password

sudo ubuntu-emulator create --arch armhf --channel ubuntu-touch/devel-proposed vivid-armhf
Creating "vivid-armhf" from ubuntu-touch/devel-proposed revision 164
Downloading...
Setting up...
Setting up a default password for phablet to: ''
No password supplied
No password supplied
No password supplied
chpasswd: (user phablet) pam_chauthtok() failed, error:
Authentication token manipulation error
chpasswd: (line 1, user phablet) password not changed

sudo ubuntu-emulator create --arch armhf --channel ubuntu-touch/devel-proposed --password=1234 vivid-armhf
Creating "vivid-armhf" from ubuntu-touch/devel-proposed revision 164
Downloading...
Setting up...
Setting up a default password for phablet to: '1234'
Creating snapshots for disks...
Succesfully created emulator instance vivid-armhf in /home/chihchun/.local/share/ubuntu-emulator/vivid-armhf

$ dpkg-query -W ubuntu-emulator
ubuntu-emulator 0.19-0~142~ubuntu14.04.1