We need two terminals/consoles per machine. One is connected with IPMI over Ethernet and the other is a software-based console that runs from the Intel BMC's web server.
The IPMI terminal ( ttyS0 ) is working fine but the software based console requires us to type a username then hit enter to be logged in. The passwordless aspect is working on terminals.
I modified our /etc/pam.d/login so the first two lines look like this:
#%PAM-1.0 auth sufficient pam_listfile.so item=tty sense=allow file=/etc/securetty onerr=fail apply=utah
Also added /etc/securetty file containing two lines:
No matter what syntax I use in the systemd override.conf, I still need to type the username ( utah )on tty1 and hit enter to login.
PS. The username 'utah' is not our actual username.