Rename the settings panel "Users Directory" to "User & Group Settings"
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Rename the settings panel "Users Directory" to "User & Group Settings" or "Directory Settings" or something as the current iteration of the name can cause confusion as "Users Directory" sounds like a panel where you would go to list the users in the local directory.
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A quick simulation. Yes it's possible.
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I suggest moving the user settings (top section only as shown below) to the top of the "Users" page where it makes more sense. Then, the "User Directory" page becomes 100% about directory stuff. LDAP/Auth Directory, perhaps?
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@humptydumpty this is another great solution.