I also tried with 5ubuntu1.3 and still cannot reproduce. A key
difference might be your:

debug1: kex: server->client aes128-ctr hmac-sha1 none

vs. my:

debug1: kex: server->client aes128-ctr umac-64-...@openssh.com none

$ ssh -v ubuntu@localhost
OpenSSH_6.7p1 Ubuntu-5ubuntu1.3, OpenSSL 1.0.1f 6 Jan 2014
debug1: Reading configuration data /etc/ssh/ssh_config
debug1: /etc/ssh/ssh_config line 19: Applying options for *
debug1: Connecting to localhost [127.0.0.1] port 22.
debug1: Connection established.
debug1: identity file /home/ubuntu/.ssh/id_rsa type 1
debug1: key_load_public: No such file or directory
debug1: identity file /home/ubuntu/.ssh/id_rsa-cert type -1
debug1: key_load_public: No such file or directory
debug1: identity file /home/ubuntu/.ssh/id_dsa type -1
debug1: key_load_public: No such file or directory
debug1: identity file /home/ubuntu/.ssh/id_dsa-cert type -1
debug1: key_load_public: No such file or directory
debug1: identity file /home/ubuntu/.ssh/id_ecdsa type -1
debug1: key_load_public: No such file or directory
debug1: identity file /home/ubuntu/.ssh/id_ecdsa-cert type -1
debug1: key_load_public: No such file or directory
debug1: identity file /home/ubuntu/.ssh/id_ed25519 type -1
debug1: key_load_public: No such file or directory
debug1: identity file /home/ubuntu/.ssh/id_ed25519-cert type -1
debug1: Enabling compatibility mode for protocol 2.0
debug1: Local version string SSH-2.0-OpenSSH_6.7p1 Ubuntu-5ubuntu1.3
debug1: Remote protocol version 2.0, remote software version OpenSSH_6.7p1 
Ubuntu-5ubuntu1.3
debug1: match: OpenSSH_6.7p1 Ubuntu-5ubuntu1.3 pat OpenSSH* compat 0x04000000
debug1: SSH2_MSG_KEXINIT sent
debug1: SSH2_MSG_KEXINIT received
debug1: kex: server->client aes128-ctr umac-64-...@openssh.com none
debug1: kex: client->server aes128-ctr umac-64-...@openssh.com none
debug1: sending SSH2_MSG_KEX_ECDH_INIT
debug1: expecting SSH2_MSG_KEX_ECDH_REPLY
debug1: Server host key: ECDSA 8c:5a:4e:4b:33:2d:86:f3:78:9c:9b:e0:4e:70:94:60
debug1: Host 'localhost' is known and matches the ECDSA host key.
debug1: Found key in /home/ubuntu/.ssh/known_hosts:1
debug1: SSH2_MSG_NEWKEYS sent
debug1: expecting SSH2_MSG_NEWKEYS
debug1: SSH2_MSG_NEWKEYS received
debug1: Roaming not allowed by server
debug1: SSH2_MSG_SERVICE_REQUEST sent
debug1: SSH2_MSG_SERVICE_ACCEPT received
debug1: Authentications that can continue: publickey
debug1: Next authentication method: publickey
debug1: Offering RSA public key: /home/ubuntu/.ssh/id_rsa
debug1: Server accepts key: pkalg ssh-rsa blen 279
debug1: Authentication succeeded (publickey).
Authenticated to localhost ([127.0.0.1]:22).
debug1: channel 0: new [client-session]
debug1: Requesting no-more-sessi...@openssh.com
debug1: Entering interactive session.
debug1: Sending environment.
debug1: Sending env LANG = en_US.UTF-8
Welcome to Ubuntu 15.04 (GNU/Linux 3.19.0-14-generic x86_64)

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https://bugs.launchpad.net/bugs/1497263

Title:
  Unable to negotiate a key exchange method

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