Sorry, I meant to reply to this yesterday. We had a bit of a firedrill here in the office.
@R D, Mason is exactly right. You can fix this yourself quite trivially, depending on how comfortable you are editing Python files.
What you need to do is open up
/opt/stack/lib/python3.6/site-packages/stack/commands/set/password/plugin_unix.py
And in the "subprocess.Popen()" call add an encoding parameter.
Basically, find the line in that file that looks like this (line 34 or so):
p = subprocess.Popen(['/usr/sbin/chpasswd'],
and make it look like this.
p = subprocess.Popen(['/usr/sbin/chpasswd'], encoding='utf-8',
Be sure the leading whitespace is still tabs, and don't forget the trailing comma.
I'll make the change in our codebase today and it will be in the next release of Stacki after rc7.
Bill