If you are getting this error it is usually caused by having more than 5 keys in your ".ssh" directory. It is a bit of a bug and this is how it manifests itself.
You will find at this point that you are not given any chance to enter a password, or if you are using key based auth that the same thing happens. You'll also find that this is happening with ALL servers you try connecting to.
The solution is to move away key pairs from .ssh so that there are no more than 5 in there.
Another way to confirm it is that you'll see auth succeeded if usuing -v for verbose mode with ssh:
debug1: Authentication succeeded (publickey).
Authenticated to 10.10.5.1 ([10.10.5.1]:22).
debug1: channel 0: new [client-session]
debug1: Requesting firstname.lastname@example.org
debug1: Entering interactive session.
debug1: pledge: network
debug1: channel 0: free: client-session, nchannels 1
Connection to 10.10.5.1 closed by remote host.
Connection to 10.10.5.1 closed.
Transferred: sent 5484, received 2076 bytes, in 0.0 seconds
Bytes per second: sent 3504199.1, received 1326534.9
debug1: Exit status -1
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