I'm sort of confused by the bug report. Here are the relevant snippets from the man-pages:
UsePAM Enables the Pluggable Authentication Module interface. If set to ``yes'' this will enable PAM authentication using ChallengeResponseAuthentication and PasswordAuthentication in addition to PAM account and session module processing for all authentication types. Because PAM challenge-response authentication usually serves an equivalent role to password authentication, you should disable either PasswordAuthentication or ChallengeResponseAuthentication. If UsePAM is enabled, you will not be able to run sshd(8) as a non-root user. The default is ``no' ... PrintMotd Specifies whether sshd(8) should print /etc/motd when a user logs in interactively. (On some systems it is also printed by the shell, /etc/profile, or equivalent.) The default is ``yes'' ... PrintMotd *only* is documented as controlling interactive logins. I believe all affected users so far have indicated (if at all) they are using key-based authentication, which is unaffected by PrintMotd's setting either way. UsePAM, on the other hand, displays the MOTD because /etc/pam.d/sshd contains (on 16.04, at least) by default: # Print the message of the day upon successful login. # This includes a dynamically generated part from /run/motd.dynamic # and a static (admin-editable) part from /etc/motd. session optional pam_motd.so motd=/run/motd.dynamic session optional pam_motd.so noupdate and PAM is managing the ssh login session when so configured for sshd. At this point, I think it's not a bug, and I'm marking it as invalid. Please reopen as new with justification if you feel this is incorrect. ** Changed in: openssh (Ubuntu) Status: Confirmed => Invalid -- You received this bug notification because you are a member of Ubuntu Touch seeded packages, which is subscribed to openssh in Ubuntu. https://bugs.launchpad.net/bugs/543767 Title: ssh logins doesn't show the MOTD when connecting with public key authorisation Status in Ubuntu Server papercuts: Incomplete Status in openssh package in Ubuntu: Invalid Bug description: This is merely a minor annoyance, but nonetheless worth a bug report for the servers papercut team: The method to display a MOTD described in the official Ubuntu server guide, chapter 22 (https://help.ubuntu.com/9.10/serverguide/C/update- motd.html) doesn't work as soon as you connect with public key authorisation. Connecting /w password only shows the MOTD correctly. To manage notifications about this bug go to: https://bugs.launchpad.net/server-papercuts/+bug/543767/+subscriptions -- Mailing list: https://launchpad.net/~touch-packages Post to : touch-packages@lists.launchpad.net Unsubscribe : https://launchpad.net/~touch-packages More help : https://help.launchpad.net/ListHelp