This is still a problem.

/bin> mkpasswd
SYSTEM:*:18:544:,S-1-5-18::
LocalService:*:19:544:U-NT AUTHORITY\LocalService,S-1-5-19::
NetworkService:*:20:544:U-NT AUTHORITY\NetworkService,S-1-5-20::
Administrators:*:544:544:,S-1-5-32-544::
mkpasswd (434): [31] A device attached to the system is not functioning.
/bin>

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Note:
mkgroup doesn't give an error message.  Why mkpasswd does and mkgroup does not
might be pertinent -- don't they use similar mechanisms?  What do they do different?