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After deploying the key, you try to ssh into the instance but get prompted for a password.
ssh -vvv -i test.pem <user>@<host>
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This is an issue with an updated openssl version,
> openssl versionOpenSSL 1.0.1k 8 Jan 2015
This is a new version of openssl. The new version does not create the key with RSA at the begin and end. So you have to use a separate command to convert the key file to old version of ssh