Hi Alexei,
> Perhaps (likely?) it is a tty issue. How do you start Emacs on your MS
> Windows? Have you tried to start from a shell?
I've played further with this. Well, it seems like it is a known
issue. In the Tramp manual, we have
--8<---------------cut here---------------start------------->8---
*Note* that ‘sshx’ does not bypass authentication questions. For
example, if the host key of the remote host is not known, ‘sshx’
will still ask "Are you sure you want to continue connecting?".
TRAMP cannot handle such questions. Connections will have to be
setup where logins can proceed without such questions.
--8<---------------cut here---------------end--------------->8---
See (info "(tramp) Inline methods")
I suppose the question for the verification code falls into this
category. Perhaps you try the "plink" method instead of "sshx"?
Best regards, Michael.