Cloud-Init keeps setting PasswordAuthentication to no even with ssh_pwauth set to true.

Solution Verified - Updated -

Issue

  • cloud-init is disabling SSH password authentication even though it's configured not to.
  • /etc/cloud/cloud.cfg contains "ssh_pwauth: yes", but PasswordAuthentication is still set to no.

Environment

  • Red Hat Enterprise Linux 7
    • cloud-init
  • Guest on Microsoft Azure

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