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freenode #ubuntu-server pointed me to create the bug here. Not sure if
it belongs here or elsewhere.

Create a container like so:
 $ sudo lxc-create -t ubuntu-cloud -n base -- -S ~/.ssh/id_rsa.pub -r trusty

Start it:
 $ sudo lxc-start -d -n base

Attach to the container:
 $ sudo lxc-attach -n base

Try to login (fails with too many authentication errors):
 $ ssh -i ~/.ssh/id_rsa ubuntu@`dig @10.0.3.1 base` -v

Look at logs (/var/log/auth.log) on attached container and see:
 - error: Could not load host key: /etc/ssh/ssh_host_ed25519_key

Work around by manually creating key:
 $ sudo /usr/bin/ssh-keygen -t ed25519 -f /etc/ssh/ssh_host_ed25519_key -N ''
 $ sudo service ssh restart

Login now works.

System info:
 $ lsb_release -a
  No LSB modules are available.
  Distributor ID: Ubuntu
  Description:    Ubuntu 14.04 LTS
  Release:        14.04
  Codename:       trusty

OpenSSH version: OpenSSH_6.6p1 Ubuntu-2ubuntu1, OpenSSL 1.0.1f 6 Jan
2014

LXC version: 1.0.3

** Affects: openssh (Ubuntu)
     Importance: Undecided
         Status: New

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cannot log into trusty ubuntu-cloud based LXC containers
https://bugs.launchpad.net/bugs/1317592
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Team, which is subscribed to openssh in Ubuntu.

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