Hi @jchittum

I made some test today using the daily build from 20240403 and same
problem.

cloud init version is 23.4.4-0ubuntu0~22.04.1

ssh_pwauth is present in /var/run/cloud-init/combined-cloud-config.json
and value is true.

root@r-bsz-test-001:/# grep ssh_pwauth 
/var/run/cloud-init/combined-cloud-config.json 
 "ssh_pwauth": true,

no 50-cloud-init.conf file is created in /etc/ssh/sshd_config.d/

root@r-bsz-test-001:/# ls /etc/ssh/sshd_config.d/
60-cloudimg-settings.conf
root@r-bsz-test-001:/# grep -H PasswordAuthentication /etc/ssh/sshd_config.d/*
/etc/ssh/sshd_config.d/60-cloudimg-settings.conf:PasswordAuthentication no

No errors in /var/log/cloud-init.log

Every other configuration is working fine.

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https://bugs.launchpad.net/bugs/2049860

Title:
  cloud-init cloud-config for ssh broken in jammy

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