util-linux-native provides /bin/reset and /sbin/nologin. ncurses-native provides /bin/reset shadow-native provides /sbin/nologin It creates a conflict. Conflict can be solved by deleting the files from util-linux-native installation.
Created attachment 2449 [details] Fix for the shadow-native, ncurses-native conflict. I've fixed the problem by deleting those files from sysroot. Native build target will not use /bin/reset or /sbin/nologin. So it should be safe.
http://git.yoctoproject.org/cgit/cgit.cgi/poky/commit/?id=3aad5e01cc3a5292d4f28a25e06ac815d77c2e08