"No principal with the specified name exists."
/var/log/vmware/sso/ssoAdminServer.log shows that the vCenter Single Sign-On (SSO) service is incorrectly attempting to process the local user within the SSO domain (default vsphere.local) context, leading to the failure:"test-user" is a localos user, but SSO is trying to change the password for the SSO domain (default vsphere.local) domain.
/var/log/vmware/sso/ssoAdminServer.log
[YYYY-MM-DDTHH:MM:SS] ERROR ssoAdminServer[95:pool-2-thread-2] [OpId=xxxxxxxx-xxx-auto-xx-xx:xxxxxxxx] [com.vmware.identity.admin.server.ims.impl.PrincipalManagementImpl] Error in updateLocalPersonUserDetails. Check if user already exists. Idm client exception.com.vmware.identity.idm.InvalidPrincipalException: user test-user@sso_domain does not exists
[YYYY-MM-DDTHH:MM:SS] INFO ssoAdminServer[95:pool-2-thread-2] [OpId=xxxxxxxx-xxx-auto-xx-xx:xxxxxxxx] [com.vmware.identity.admin.vlsi.PrincipalManagementServiceImpl] The specified principal (test-user) is invalid.
com.vmware.vim.sso.admin.exception.InvalidPrincipalException: The specified principal (test-user) is invalid.
This issue is identified as a bug specific to the vCenter Server 8.0 U3 GUI.