Newly created user on Ubuntu Server has the wrong shell prompt

Check the shell you have assigned. If you used the useradd command in Ubuntu 18, the default login shell will be /bin/sh and you will get output like you mentioned. You can change the login shell by executing the command:

sudo usermod -s /bin/bash svn

If you want ALL new users to use the same shell, you can set that using /etc/default/useradd. Change the SHELL setting to reflect the path to the shell binary you want to use. For example, mine looks like:

HOME=/home
SHELL=/bin/zsh
SKEL=/etc/skel
CREATE_MAIL_SPOOL=yes

Also worth noting, you can use the directory named in your SKEL setting to define what files should be copied into a new user's home directory by default. In my case, I have a .zshrc file containing zsh configurations I want for all new users.

Use these two files to set defaults for all new users.