When hostname is not set in the system, such error is occured:
check_ntlm_password: Checking password for unmapped user [NODOMAIN]\[USER]@ with the new password interface
check_ntlm_password: mapped user is: \[USER]@
check_ntlm_password: Authentication for user [USER] -> [USER] FAILED with error NT_STATUS_NO_SUCH_USER
Please, add appropriate hostname checks to make debug output more understandable.