P.S. - pam 1.3.1 was released last May. You did not run pacman since then?
]]>I found the culprit to be pam, after downgrading it via chroot everything works fine. The upgrade would be (1.3.1-2 => 1.5.0-2)
For the time being I have
IgnorePkg = pam
in my pacman.conf. But this is not a solution. I guess I need to edit the configs.
My encrypted /home partition unlocks at gdm-login (a behaviour I might extend to tty if this makes solving the problem easier).
Adding here /etc/pam.d/system-login
#%PAM-1.0
auth required pam_tally.so onerr=succeed file=/var/log/faillog
auth required pam_shells.so
auth requisite pam_nologin.so
auth optional pam_mount.so
auth include system-auth
account required pam_access.so
account required pam_nologin.so
account include system-auth
password optional pam_mount.so
password include system-auth
session optional pam_loginuid.so
session optional pam_keyinit.so force revoke
session [success=1 default=ignore] pam_succeed_if.so service = systemd-user quiet
session include system-auth
session optional pam_motd.so motd=/etc/motd
session optional pam_mail.so dir=/var/spool/mail standard quiet
-session optional pam_systemd.so
session required pam_env.so
and /etc/pam.d/system-auth
#%PAM-1.0
auth required pam_unix.so try_first_pass nullok
auth optional pam_permit.so
auth optional pam_mount.so
auth required pam_env.so
account required pam_unix.so
account optional pam_permit.so
account required pam_time.so
password optional pam_mount.so
password required pam_unix.so try_first_pass nullok sha512 shadow
password optional pam_permit.so
session optional pam_mount.so
session required pam_limits.so
session required pam_unix.so
session optional pam_permit.so