Why does sftp fail with error "request for subsystem sftp failed on channel"?

Solution Verified - Updated -

Issue

  • When connect to the server via sftp, getting following error message.
Request for subsystem 'sftp' failed on channel 0
Couldn't read packet: Connection reset by peer

Environment

  • Red Hat Enterprise Linux 5.6
  • vsftpd
  • arch-x86_64

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