I did a clean install of the latest cygwin and for some bizarre reason /usr/bash(.exe) is marked "not executable" after the installation. This causes a problem with openssh because when an incoming session comes it tries to run bash and finds it "not executable" and will reject the login with a cryptic message. Only by turning on debug mode for sshd in the windows registry and looking at the sshd log did I finally figure out it was the bash "not executable" problem.
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