A user is created in the Provisioning server or via explore/correlate users, but the user in the IM User Directory is not created. Delete and modify operations, however, do work. Nothing appears in the IM logs or console for new users, but activity for delete and modify operations appears as expected.
On the "provisioning create user" task the fields "Password" and "confirm password" were set to "Read Write/Required."
Changing the permissions on these fields to "read/write only" solves the issue.
On the out of the box Identity Manager installation these fields for this task "provisioning create user" are not required.