After a week of iterations, I finally found the problem.  I was setting 
'PermitRootLogin no' in the global section of the bare metal OS sshd_config, as 
we do on all of our servers.  Instead, PermitRootLogin is set to 
'without-password' in a match block to allow root logins only from a well-known 
set of hosts.

Can someone explain why setting 'PermitRootLogin no' in the sshd_config on the 
hypervisor OS would affect the hosted engine deployment?

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