Found the problem and solution:

In sshd2_config there are two lines:

AllowedAuthentications
RequiredAuthentications

You can't use both simultaneously.

Disable RequiredAuthentications
and Enable AllowedAuthentications.

- Wally Winzer Jr.

BTW, 3.0.1 seems to thread much faster than 2.4.0
and 3.0.0.

"Auteria Wally Winzer Jr." wrote:

> I already did.  Checked and double-checked.
> I may have to revert back to 2.4.0...
>
> - WW Jr.
>
> P Lanvin wrote:
>
> > On Sun, 22 Jul 2001, Auteria Wally Winzer Jr. wrote:
> >
> > >I ran ssh w/ -v and this line caught me by surprise:
> > >
> > >debug: server offers auth methods 'password' (previous method was successful but
> > >more required).
> >
> > Hi,
> >
> > I have not yet tested 3.x but I'd check for new evil
> > defaults in the server config file.
> >
> > --
> >
> > mvh
> >
> > /PL

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