After some analysis the issues turned out to be related to missing ed25519 host key. Once it was created the sshd had no issues with running. My custom sshd_config has only specific HostKeys defined and for some reason not having there ed25519 cause this crash.
Running: ssh-keygen -A and adding to /etc/ssh/sshd_config line: HostKey /etc/ssh/ssh_host_ed25519_key solved this. -- To UNSUBSCRIBE, email to [email protected] with a subject of "unsubscribe". Trouble? Contact [email protected] Archive: https://lists.debian.org/caohmf0-pjj7xstfxqpx5a-a3pyg7t9fjh-gyuxsw2tcvqc9...@mail.gmail.com

