1945020 - SFTP Receiver channel throws UnsupportedOperationException

When using an SFTP receiver channel the following error message can be seen:

• In audit log/communication channel monitoring:
  Message processing failed. Cause: javax.resource.ResourceException: java.lang.UnsupportedOperationException: received authentication request from server which could not be processed
  destination=XXXXXX; name=XXXXXX; instruction=XXXXXXprompt=Password:
  
   

• When tracing the message exchange After enabling traces as per SAP Note 1514898 - Troubleshooting SAP Process Orchestration / Integration for  com.sap.aii.adapter.sftp and all of its sub tree and the following message can be seen from the trace:
  
  Authentication that can continue: publickey.keyboard-interactive.password
  Next authentication method: publickey
  Authentication that can continue: publickey.keyboard-interactive.password
  Next authentication method: keyboard-interactive
  
   

• SAP NetWeaver
• SAP Process Integration 

Authentication, Request, Instruction, MessagingException, JCA adapter, Method, Message could not be forwarded, Received authentication request, Message status set to NDLV, SFTP, Publickey, Keyboard-interactive, UnsupportedOperationException, Process Integration 7.10, PI 7.10, Process Integration 7.11, PI 7.11, Process Integration 7.30, PI 7.30, Process Integration 7.31, PI 7.31, Process Integration 7.4, PI 7.4 , KBA , BC-XI-CON-SFT , Secure File Transfer Protocol Adapter , Problem