Hi @Voyager Technologies,
Welcome to Box Community, and we’re happy answer your question regarding the new feature announcement.
Thanks for showing your interest in Box SFTP support. As of this writing, we are still yet to release this feature and please tune in for more updates by subscribing to Announcements.
Rest assured that the Box team will keep you posted!
https://support.box.com/hc/en-us/articles/ [removed by moderator] -Introducing-Box-SFTP-Sept-2025
This support article has the “GA” tag, and implies that the feature has been in full release for almost a month now.
I am experiencing the same issue as the OP, with the full key exchange occurring, but the password failing.
I already identified one issue with the use of the “@” sign in the username being problematic with some clients, as they assume “ [removed by moderator] ” format and stop parsing the username at the first “@” sign.
The workaround for this is to use this command line format so that there is zero ambiguity in the parsing:
sftp -v -oUser=user@example.com sftp.services.box.com
I am still working on how to get this to parse in the ssh config file so that the command line option is not required, but everything I have attempted so far keeps truncating the user value at the “@” sign.
I am also disappointed in Box’s sFTP implementation that has been described in the support articles, because I was hoping to see a per-folder implementation similar to the email delivery feature available on each folder.
This could have permitted us to partition access by partner/vendor so that each external entity that we receive files from could have their own unique access to specific folders, and not have to create multiple accounts just for upload access.
@Voyager Technologies The sFTP feature is a configurable service, and needs to be enabled before it will accept password authentication.

@init0 This is enabled on my admin backend but I still cannot install this integration under my own BOX account (same account as my admin), and trying to connect using sftp.services.box.com:22 does not work.