pam_succeed_if(sshd:auth): requirement "uid >= 1000" not met by user "testuser"

Hey guys,

I am super confused about how Virtualmin sets up additional users in CentOS 7, and could use some assistance. This may or may not be a bug.

When creating a new Virtual Server, the parent UID is being made in the 500's range. This user is able to login via SSH successfully without an issue.

When adding an additional user for a Virtual Server, it's UID is also being made in the 500's range. Even though I have chosen to permit this user to login via SSH, it cannot and is getting the following error in /var/log/secure:

pam_succeed_if(sshd:auth): requirement "uid >= 1000" not met by user "testuser"

I see in /etc/pam.d password-auth and system-auth are configured that way:

#%PAM-1.0
# This file is auto-generated.
# User changes will be destroyed the next time authconfig is run.
auth required pam_env.so
auth sufficient pam_unix.so nullok try_first_pass
auth requisite pam_succeed_if.so uid >= 1000 quiet_success
auth required pam_deny.so

account required pam_unix.so
account sufficient pam_localuser.so
account sufficient pam_succeed_if.so uid < 1000 quiet
account required pam_permit.so

password requisite pam_pwquality.so try_first_pass local_users_only retry=3 authtok_type=
password sufficient pam_unix.so sha512 shadow nullok try_first_pass use_authtok
password required pam_deny.so

session optional pam_keyinit.so revoke
session required pam_limits.so
-session optional pam_systemd.so
session [success=1 default=ignore] pam_succeed_if.so service in crond quiet use_uid
session required pam_unix.so

So, my question is 2 fold:

1) What the heck is virtualmin doing special with the administrative user that allows them to login via SSH *without* their UID being above 1000? (Seriously I've looked around the system for 30 minutes now and can't find it)

2) Are additional users supposed to get their UID created above 1000 on CentOS 7 systems? If so, this isn't happening.

Thanks!