It does work as described, but only if you use the "set password" button prior to creating the user; though, the set password/"Set Agent Password" screen does not indicate a "Welcome" message will be sent (i.e., only "Send the agent a password reset email" and "Require password change at next login" checkbox options exist.
If you create the user first and then attempt to use the Set Password button, only a password reset email is sent, which has to comply with your "Reset Token Expiration" settings.
Since we have already created a couple dozen agents incorrectly (improper order of "Set Password" button use), is there a documented method for creating the users via CLI? I found the manage.php and associated import function, but I can't seem to get it to work.