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Hi I have the same behaviour. I was testing this today as well. Even if the parameter "firstlogonbehaviour" is set to "no", cloudbase still exexutes the piece of code that set the password as expired.

Logs (the lines starting with ---> were added by me in the code before sysprep)

2016-10-19 10:05:09.507 1344 INFO cloudbaseinit.init [-] Executing plugin 'SetUserPasswordPlugin'