SFTP does not work if the FTP server is setup with Chroot jail

Has a sftp server locked down tight using Chroot SFTP setup.  Try to run a job to ftp to this type of system we get the following error:

 Unable to connect to FTP server. Exception:  Could not login info SFTP server, cause:Auth fail 
File transfer failed. 
Failed. Cause: (12) Could not login info SFTP server, cause:Auth fail
Auth fail
FTP Command completed with errors.

Steps to fix the issue are:

In the file /etc/ssh/sshd_config

the following lines should be changed to be:

PasswordAuthentication = yes
PermitEmptyPasswords = no

And restart sshd daemon