But you're not setting a password on the new user (and maybe it's dropping it into wheel or whatever the admin group is in Mint by default). It's probably a bug in that UI where it should be prompting you for a password or not add that user to the admin group.
Would be curious to see how it changed /etc/{passwd,group,shadow}. Sudo can be configured to not prompt for a password if you're in the admin group, but that's typically not the default on most Linux distributions.
There might already be an upstream bug for it if you try searching.