+1 to this, I just found out that password auth was back on on my server (7.0.0)
https://docs.unraid.net/unraid-os/release-notes/6.9.0/#ssh-improvements does not seem to be respected anymore. I checked the rc.d script mentioned in the docs, but there's nothing that would be changing the PasswordAuthentication directive, it is only setting the listen addresses
Edit: as mentioned in earlier comments, cp -n is preventing the already existing sshd_config from being copied so that explains this behaviour