Q:

Internal SFTP Settings

Goal: to limit user access to home directory and symlinked directories in home.
I tried the following configuration in sshd_config
# Subsystem sftp /usr/lib/openssh/sftp-server
Subsystem sftp internal-sftp

Match user matt
     ChrootDirectory %h
     X11Forwarding no
     AllowTcpForwarding no
     ForceCommand internal-sftp

and then restarted sshd. User can't login using the correct password. Connection refused authentication failed.

A:

With chroot SFTP, the home directory of the user must be owned by root:root and not be writable by the user.
Edit to add: The symlinks you mention will only work if they are relative symlinks to targets within the home directory.

