Comment 28 for bug 272232

Yes it is:

ara@sushirider:~$ sudo apt-get upgrade
Reading package lists... Done
Building dependency tree
Reading state information... Done
0 upgraded, 0 newly installed, 0 to remove and 0 not upgraded.
ara@sushirider:~$ sudo passwd
Enter new UNIX password:
Retype new UNIX password:
Sorry, passwords do not match
passwd: password updated successfully

But, Dustin, this is only reproducible when you type "sudo passwd". If you change current user's password:

ara@sushirider:~$ passwd
Changing password for ara.
(current) UNIX password:
Enter new UNIX password:
Retype new UNIX password:
Sorry, passwords do not match
passwd: Authentication information cannot be recovered
passwd: password unchanged