The flaw has been confirmed by a number of users and reported by various tech publications.
As Forbes points out, while someone needs to have physical access to your computer, the flaw is problematic in certain scenarios. For instance thieves now have an easy way to get into an Apple computer they've stolen and third parties like law enforcement officials could easily login to a suspect's private computer.
The bug reportedly works for all aspects of the operating system that would normally require a password, meaning someone could also get access to your Apple Keychain which holds all your passwords.
If you want a quick way to protect against the flaw, it's probably wise to turn off any guest admin account so people can't enact the password workaround, or change the root password from your directory utility under Settings > Users & Groups > Login Options.
Apple has yet to comment on the flaw.