Local Actions don't seem to work on ansible 1.8.2

gistfile1.yml

# Check if password has been generated

- local_action: stat path={{ pgp_password_file }}
  register: local_pgp_password_file

# Generate password if it doesn't exist

- local_action: command pwgen -s 25 1 #TODO: settings for length
  register: password
  when: local_pgp_password_file.stat.exists == False

- local_action: command mkdir -p {{ pgp_password_path }}
  when: local_pgp_password_file.stat.exists == False

- local_action: shell echo {{ password.stdout }} | gpg --encrypt --armor -r {{ security.pgp_id }} > {{ pgp_password_file }} creates={{ pgp_password_file }}
  when: local_pgp_password_file.stat.exists == False

# Decrypt password if it does exist

- local_action: command pgp --decrypt {{ pgp_password_file }}
  register: password
  when: when: local_pgp_password_file.stat.exists == True

# Set it in the VM

- local_action: shell echo {{ password.stdout }} | mkpasswd --method=SHA-512 --stdin
  register: crypt_password

- user: name=root password=crypt_password.stdout