Exactly, anyone doing multi-user systems already fixed this with the same overall method used by every other large deployment: Kerberos and LDAP. I'm sitting at a work machine that has the same output; nothing is in /etc/passwd or /etc/group beyond the core system services, and yet somehow magically getent passwd/group works and I have an automounted (at login), link-encrypted (and presumably backend encrypted) network share at my disposal.
I guess our IT can look forward to Even More Fun! trying to fix Poettering's latest "everything is a laptop!" shitshow. I wouldn't be surprised if we do end up on Devuan or something systemd-free in the future.