I too am experiencing the same bug. Running 8.10, 64-bit on a Core2Duo.
This bug first appeared when I changed the passphrase for my key,
everything was working fine before that. The workarounds above worked
fine for me, and my ssh -v output is the same as well.
--
ssh Agent admitted failure to
Interestingly, restarting X causes this bug to go away. For those
experiencing this bug, did it just show up one day, or did you do
something out of the ordinary (eg, change keys, change your passphrase,
in any way modify your ~/.ssh directory while running, perhaps deny the
keyring once -
