[ed: I'm away from the computers I tested on, but I remember I found quite a few stories like this, which all seemed to be a few years old, and had no resolution:
http://fossil-users.fossil-scm.narkive.com/iM7AQS3b/authenti...
Which is why I asked if anyone has been able to, with a current Fossil build, to:
On server "a" (in my case running Ubuntu 16.10, but testing both machines running Windows 10 would also be interesting): run fossil init ; fossil ui #change auth, register normal users user1, user2; fossil serve
Clone from a as user1, user2 on machine b with defined passwords (I got this far).
On b, run fossil ui, edit wiki as user1 and/or user2 - have sync work. Or edit and commit code and have sync work. ]