SSH key authentication not working on a fresh install

I performed a fresh install of OMV4 on a dell T30 server. Created a new user and pasted the RFC 4716 key but I am unable to login using the key. Password works.

Searching on forums, I found this thread.

That thread seems to talk about image issues with RPi but it seems it is effecting other build too.

My output:

getfacl /
getfacl: Removing leading '/' from absolute path names
# file: .
# owner: root
# group: root
user::rwx
group::rwx
other::r-x