This issue is resolved in 2018.1 and customers are encouraged to upgrade to that release.
If upgrading is not an immediate option, then a workaround is to create a custom page and use the "Custom List" app.
1. Click the menu that you want to add the page to and click the + symbol.
2. A page creation dialogue window is shown. Enter the "Name" of the page.
3. On the new page, click "Start adding apps"
4. Within the app catalog, type "Custom List" in the search window
5. Click "Custom List (formerly Custom Grid)"
6. Click "Add this App"
7. The settings window will be shown
8. Enter a Title for the app.
9. Choose Type: User
10. Click "Save"
The new user list is now shown with pagination controls.