Template Override

I also noticed the same thing - its no longer recognizing the template after clearing caches.

As this module is currently built, the file has to go into a nested templates directory, as follows:
[your_theme]/templates/templates/login.tpl.php

Nope. Sorry, thought I had this working.

Drupal requires that this file be named luxe-login.tpl.php in your theme directory. The module name is part of the namespace to keep multiple modules with the same filenames from colliding.

Per attached patch, I added this info to the readme file provided in the module so people won't have to find this in the issue queue. It might be worth updating the text on https://www.drupal.org/project/luxe as well.

In general, I don't want to repeat the core Drupal docs in a module. "How do I override a template provided by a module" is a Drupal question, not specific to this module. But because this is an obscure feature of Drupal that's not commonly understood and is downright difficult to find the docs, a mention in the readme doesn't bug me that much.

Patch committed to 7.x-1.x and master. Won't do a new release just for this change, but the next release will have it.

Thanks - I do see your point about duplicating core docs, but it was a tiny gotcha for me and thought it might save some people some time and maybe you some questions in the issues queue :)