Setting up hostbased authenication using Openssh 3.8.1p1 on Solaris 8

Please see https://www.experts-exchange.com/questions/20968608/SSH-access-without-password.html

Connection still fails, I've pasted the output from sshd -p 2222 -ddd on the server side.

s5ulds@dmplus01:sudo-sh# ./sshd -p 2222 -dd
debug2: read_server_config: filename /usr/SYSADM/openssh/sshd_config
debug1: sshd version OpenSSH_3.8.1p1
debug1: read PEM private key done: type RSA
debug1: private host key: #0 type 1 RSA
debug1: read PEM private key done: type DSA
debug1: private host key: #1 type 2 DSA
debug1: Bind to port 2222 on ::.
Server listening on :: port 2222.
debug1: Bind to port 2222 on 0.0.0.0.
Server listening on 0.0.0.0 port 2222.
debug1: Server will not fork when running in debugging mode.
Connection from 172.21.98.209 port 2662
debug1: Client protocol version 2.0; client software version OpenSSH_3.8.1p1
debug1: match: OpenSSH_3.8.1p1 pat OpenSSH*
debug1: Enabling compatibility mode for protocol 2.0
debug1: Local version string SSH-2.0-OpenSSH_3.8.1p1
debug2: Network child is on pid 9703
debug1: permanently_set_uid: 27/27
debug1: list_hostkey_types: ssh-rsa,ssh-dss
debug1: SSH2_MSG_KEXINIT sent
debug1: SSH2_MSG_KEXINIT received
debug2: kex_parse_kexinit: diffie-hellman-group-exchange-sha1,diffie-hellman-gro
up1-sha1
debug2: kex_parse_kexinit: ssh-rsa,ssh-dss
debug2: kex_parse_kexinit: aes128-cbc,3des-cbc,blowfish-cbc,cast128-cbc,arcfour,
aes192-cbc,aes256-cbc,rijndael-cbc@lysator.liu.se,aes128-ctr,aes192-ctr,aes256-c
tr
debug2: kex_parse_kexinit: aes128-cbc,3des-cbc,blowfish-cbc,cast128-cbc,arcfour,
aes192-cbc,aes256-cbc,rijndael-cbc@lysator.liu.se,aes128-ctr,aes192-ctr,aes256-c
tr
debug2: kex_parse_kexinit: hmac-md5,hmac-sha1,hmac-ripemd160,hmac-ripemd160@open
ssh.com,hmac-sha1-96,hmac-md5-96
debug2: kex_parse_kexinit: hmac-md5,hmac-sha1,hmac-ripemd160,hmac-ripemd160@open
ssh.com,hmac-sha1-96,hmac-md5-96
debug2: kex_parse_kexinit: none,zlib
debug2: kex_parse_kexinit: none,zlib
debug2: kex_parse_kexinit:
debug2: kex_parse_kexinit:
debug2: kex_parse_kexinit: first_kex_follows 0
debug2: kex_parse_kexinit: reserved 0
debug2: kex_parse_kexinit: diffie-hellman-group-exchange-sha1,diffie-hellman-gro
up1-sha1
debug2: kex_parse_kexinit: ssh-rsa,ssh-dss
debug2: kex_parse_kexinit: aes128-cbc,3des-cbc,blowfish-cbc,cast128-cbc,arcfour,
aes192-cbc,aes256-cbc,rijndael-cbc@lysator.liu.se,aes128-ctr,aes192-ctr,aes256-c
tr
debug2: kex_parse_kexinit: aes128-cbc,3des-cbc,blowfish-cbc,cast128-cbc,arcfour,
aes192-cbc,aes256-cbc,rijndael-cbc@lysator.liu.se,aes128-ctr,aes192-ctr,aes256-c
tr
debug2: kex_parse_kexinit: hmac-md5,hmac-sha1,hmac-ripemd160,hmac-ripemd160@open
ssh.com,hmac-sha1-96,hmac-md5-96
debug2: kex_parse_kexinit: hmac-md5,hmac-sha1,hmac-ripemd160,hmac-ripemd160@open
ssh.com,hmac-sha1-96,hmac-md5-96
debug2: kex_parse_kexinit: none,zlib
debug2: kex_parse_kexinit: none,zlib
debug2: kex_parse_kexinit:
debug2: kex_parse_kexinit:
debug2: kex_parse_kexinit: first_kex_follows 0
debug2: kex_parse_kexinit: reserved 0
debug2: mac_init: found hmac-md5
debug1: kex: client->server aes128-cbc hmac-md5 none
debug2: mac_init: found hmac-md5
debug1: kex: server->client aes128-cbc hmac-md5 none
debug1: SSH2_MSG_KEX_DH_GEX_REQUEST received
debug2: monitor_read: 0 used once, disabling now
debug1: SSH2_MSG_KEX_DH_GEX_GROUP sent
debug2: dh_gen_key: priv key bits set: 128/256
debug2: bits set: 535/1024
debug1: expecting SSH2_MSG_KEX_DH_GEX_INIT
debug2: bits set: 502/1024
debug2: monitor_read: 4 used once, disabling now
debug1: SSH2_MSG_KEX_DH_GEX_REPLY sent
debug2: kex_derive_keys
debug2: set_newkeys: mode 1
debug1: SSH2_MSG_NEWKEYS sent
debug1: expecting SSH2_MSG_NEWKEYS
debug2: set_newkeys: mode 0
debug1: SSH2_MSG_NEWKEYS received
debug1: KEX done
debug1: userauth-request for user root service ssh-connection method none
debug1: attempt 0 failures 0
debug2: monitor_read: 6 used once, disabling now
debug2: input_userauth_request: setting up authctxt for root
debug2: input_userauth_request: try method none
debug1: PAM: initializing for "root"
Failed none for root from 172.21.98.209 port 2662 ssh2
debug1: userauth-request for user root service ssh-connection method hostbased
debug1: attempt 1 failures 1
debug2: input_userauth_request: try method hostbased
debug1: userauth_hostbased: cuser root chost ishan. pkalg ssh-dss slen 55
debug1: PAM: setting PAM_RHOST to "ishan"
debug1: PAM: setting PAM_TTY to "ssh"
debug2: monitor_read: 45 used once, disabling now
debug2: monitor_read: 3 used once, disabling now
debug2: userauth_hostbased: chost ishan. resolvedname ishan ipaddr 172.21.98.209
debug2: auth_rhosts2: clientuser root hostname ishan. ipaddr ishan.
debug1: temporarily_use_uid: 0/1 (e=0/1)
debug1: restore_uid: 0/1
debug1: temporarily_use_uid: 0/1 (e=0/1)
debug1: restore_uid: 0/1
debug2: userauth_hostbased: authenticated 0
Failed hostbased for root from 172.21.98.209 port 2662 ssh2
debug1: userauth-request for user root service ssh-connection method hostbased
debug1: attempt 2 failures 2
debug2: input_userauth_request: try method hostbased
debug1: userauth_hostbased: cuser root chost ishan. pkalg ssh-rsa slen 143
debug2: userauth_hostbased: chost ishan. resolvedname ishan ipaddr 172.21.98.209
debug2: auth_rhosts2: clientuser root hostname ishan. ipaddr ishan.
debug1: temporarily_use_uid: 0/1 (e=0/1)
debug1: restore_uid: 0/1
debug1: temporarily_use_uid: 0/1 (e=0/1)
debug1: restore_uid: 0/1
debug2: userauth_hostbased: authenticated 0
Failed hostbased for root from 172.21.98.209 port 2662 ssh2
debug1: userauth-request for user root service ssh-connection method keyboard-in
teractive
debug1: attempt 3 failures 3
debug2: input_userauth_request: try method keyboard-interactive
debug1: keyboard-interactive devs
debug1: auth2_challenge: user=root devs=
debug1: kbdint_alloc: devices 'pam'
debug2: auth2_challenge_start: devices pam
debug2: kbdint_next_device: devices <empty>
debug1: auth2_challenge_start: trying authentication method 'pam'
Postponed keyboard-interactive for root from 172.21.98.209 port 2662 ssh2