ssh fails with error : "Server unexpectedly closed network connection"

Solution Verified - Updated -

Issue

ssh fails with error : "Server unexpectedly closed network connection".

Attempts to ssh in remotely as local/LDAP user failed.
Attempts to ssh in locally as local/LDAP user worked.
Attempts to ssh in remotely using ssh keys worked.

Environment

  • Red Hat Enterprise Linux 5,6

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