Per the provided reference URLhttps://docs.splunk.com/Documentation/Splunk/7.3.1/Admin/User-seedconf
"To set the default username and password, place user-seed.conf in $SPLUNK_HOME/etc/system/local. You must restart Splunk to enable configurations. If the $SPLUNK_HOME/etc/passwd file is present, the settings in this file (user-seed.conf) are not used."
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