Configuring openssh-server
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Password authentication appears to be disabled in your current OpenSSH server configuration. In order to prevent users
from logging in using passwords (perhaps using only public key authentication instead) with recent versions of
OpenSSH, you must disable challenge-response authentication, or else ensure that your PAM configuration does not allow
Unix password file authentication.
If you disable challenge-response authentication, then users will not be able to log in using passwords. If you leave
it enabled (the default answer), then the 'PasswordAuthentication no' option will have no useful effect unless you
also adjust your PAM configuration in /etc/pam.d/ssh.
Disable challenge-response authentication?