This bug was fixed in the package ubuntu-system-settings -
0.3+14.10.20140829.1-0ubuntu1

---------------
ubuntu-system-settings (0.3+14.10.20140829.1-0ubuntu1) utopic; urgency=low

  [ Michael Terry ]
  * When changing to swipe mode, it was possible that our policykit
    agent would not unregister itself, making the next attempt to change
    modes appear to work, but in truth fail. Also, no longer ask for a
    password to switch to swipe mode if policykit has a cached
    authentication for us. (LP: #1350381)

  [ Sebastien Bacher ]
  * [security] tweak some pin locking details to match the design better
 -- Ubuntu daily release <ps-jenk...@lists.canonical.com>   Fri, 29 Aug 2014 
05:19:18 +0000

** Changed in: ubuntu-system-settings (Ubuntu)
       Status: In Progress => Fix Released

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https://bugs.launchpad.net/bugs/1361137

Title:
  Resetting PIN/passcode/password lock doesn't work

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