Zone cloning not preserving local users home directories

I'm using Solaris 11.2.

A cloned zone isn't preserving local users home directories.

The cloning command is:

# zoneadm -z baseline-tmp clone -c baseline-tmp/sc_profile.xml baseline-general

The sc_profile.xml is being used (stripped out) just to configure the identity and IP address of the cloned zone:

<?xml version='1.0' encoding='UTF-8'?>

<!DOCTYPE service_bundle SYSTEM "/usr/share/lib/xml/dtd/service_bundle.dtd.1">

<!-- Auto-generated by sysconfig -->

<service_bundle type="profile" name="sysconfig">

  <service version="1" type="service" name="system/identity">

    <instance enabled="true" name="node">

      <property_group type="application" name="config">

        <propval type="astring" name="nodename" value="baseline-tmp"/>