Local user account created with Powershell is NOT shown in settings "Family & Other people"

In my case it was a group membership issue. I have created some users with powershell new-localuser, but they did not show up in any GUI and I was unable to log on. The users were only visible in powershell with get-localuser and lusmgr. In settings, control panel 'user accounts' and login screen they did not show up.

I just had to add the new users to the local 'users' group. Once this was done, the new users were visible in all settings and available for login.

I was unaware of that local security policy (local policy/user rights assignment/allow log on locally) restricting login to 'Guest,Administrators,Users,Backup Operators'.

Either add the users to one of these groups or add them to the local security policy.