This follows the same recent change in util-linux: https://github.com/util-linux/util-linux/pull/3354 i.e. we generally want that PAM modules can override $HOME and it is honoured for the CWD after login. (This renames the 'home' variable we maintained sofar to 'pwent_home', to clarify that it's the home directory listed in the struct passwd entry, and thus not necessarily the one actually used)
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