Logging in with home= "/" means what it says.
Since there is no home directory for the user, the login has used the root directory "/"
-bash-4.1$ is the default bash prompt. You see that when there is no
~/.bashrc nor other default bash files. These are normally created, stored and updated in the user's home directory.
Using "/" as the home directory will cause other problems, as the user Alice most likely does not have permissions to write to the root directory of the filesystem. :-)
As roaima and Luciano Andress Martini wrote, you can fix this issue by creating a home directory.