Same issue started on my desktop machine after upgrading to 25.10.

Symptoms are not exactly the same on my side as I have two ssh-ed25519
keys, and strangely only one is impacted.

When troubleshooting, it is stuck on same step as for you:
debug3: sign_and_send_pubkey: signing using ssh-ed25519 SHA256:**********

Checking processes, I see that ssh-add command is stuck. Default SSH key
agent of Ubuntu is provided by Gnome through gcr-ssh-agent.service, so
it may be the actually affected package.

As a workaround, I disabled it using :
systemctl --user disable --now gcr-ssh-agent.service
systemctl --user mask  gcr-ssh-agent.service
systemctl --user disable --now gcr-ssh-agent.socket
systemctl --user mask gcr-ssh-agent.socket

A restart of the machine may be needed as SSH_AUTH_SOCK env variable is
not directly updated.

This now works using SSH agent of openssh-client package.

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https://bugs.launchpad.net/bugs/2130448

Title:
  ssh command in 25.10 fails to connect with RSA key and waits

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