I know what the issue is:
From the 6.9 OpenSSH patch notes:
* ssh(1), sshd(
: deprecate legacy SSH2_MSG_KEX_DH_GEX_REQUEST_OLD
message and do not try to use it against some 3rd-party SSH
implementations that use it (older PuTTY, WinSCP).
Dejawin is using a PuTTY version that sends this message to the host. Here is a log from a server that works:
Feb 19 14:58:13 uatinf2 sshd[5808]: Connection from 192.168.33.18 port 54527 on 192.168.7.15 port 22
Feb 19 14:58:13 uatinf2 sshd[5808]: debug1: Client protocol version 2.0; client software version PuTTY-Local: Apr 4 2011 16:23:55
Feb 19 14:58:13 uatinf2 sshd[5808]: debug1: no match: PuTTY-Local: Apr 4 2011 16:23:55
Feb 19 14:58:13 uatinf2 sshd[5808]: debug1: Enabling compatibility mode for protocol 2.0
Feb 19 14:58:13 uatinf2 sshd[5808]: debug1: Local version string SSH-2.0-OpenSSH_6.6.1
Feb 19 14:58:13 uatinf2 sshd[5808]: debug1: permanently_set_uid: 71/65 [preauth]
Feb 19 14:58:13 uatinf2 sshd[5808]: debug1: list_hostkey_types: ssh-rsa,ssh-dss,ecdsa-sha2-nistp256,ssh-ed25519 [preauth]
Feb 19 14:58:13 uatinf2 sshd[5808]: debug1: SSH2_MSG_KEXINIT sent [preauth]
Feb 19 14:58:13 uatinf2 sshd[5808]: debug1: SSH2_MSG_KEXINIT received [preauth]
Feb 19 14:58:13 uatinf2 sshd[5808]: debug1: kex: client->server aes256-cbc hmac-sha1 none [preauth]
Feb 19 14:58:13 uatinf2 sshd[5808]: debug1: kex: server->client aes256-cbc hmac-sha1 none [preauth]
Feb 19 14:58:13 uatinf2 sshd[5808]: debug1: SSH2_MSG_KEX_DH_GEX_REQUEST_OLD received [preauth]
Feb 19 14:58:13 uatinf2 sshd[5808]: debug1: SSH2_MSG_KEX_DH_GEX_GROUP sent [preauth]
Feb 19 14:58:13 uatinf2 sshd[5808]: debug1: expecting SSH2_MSG_KEX_DH_GEX_INIT [preauth]
Feb 19 14:58:13 uatinf2 sshd[5808]: debug1: SSH2_MSG_KEX_DH_GEX_REPLY sent [preauth]
Feb 19 14:58:13 uatinf2 sshd[5808]: debug1: SSH2_MSG_NEWKEYS sent [preauth]
Feb 19 14:58:13 uatinf2 sshd[5808]: debug1: expecting SSH2_MSG_NEWKEYS [preauth]
Feb 19 14:58:13 uatinf2 sshd[5808]: debug1: SSH2_MSG_NEWKEYS received [preauth]
Feb 19 14:58:13 uatinf2 sshd[5808]: debug1: KEX done [preauth]
Feb 19 14:58:18 uatinf2 sshd[5808]: debug1: userauth-request for user jheath service ssh-connection method none [preauth]
Feb 19 14:58:18 uatinf2 sshd[5808]: debug1: attempt 0 failures 0 [preauth]
I suspect they are ignoring this message from the client and the negotiation is busted at that point but the connection doesn't die until it tries to tie to a TTY.