Problem
The People Directory is showing one or more error messages: profile: User "<Username>" does not exist. next to entries of other users that look fine.
Some of them might be disabled AD accounts, some might not be “real” users, etc.
Solution
In most cases the content index is not up to date. So it helps to try to rebuild the content index from the scratch. Afterwards your People Directory should show only existing entries and no error messages.
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