Looks rather like bug 216990. The error messages are mangled relative to
that, though, and definitely don't look right - perhaps you could post
/etc/pam.d/common-auth?
** Changed in: pam (Ubuntu)
Sourcepackagename: openssh => pam
Status: New => Incomplete
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sshd: PAM adding faulty module
https://bugs.launchpad.net/bugs/223119
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