Issue sftp-server binary into chroot environment sftp-server binary not found

[toomanylogins]

After a clean install Ubuntu 16 LTS and Onyx 17.8.11 this is my only issue. I see some others had this problem but no clear answer. From install log

'/lib/x86_64-linux-gnu/libcrypt.so.1' -> '/var/www/vhosts/chroot/lib/libcrypt.so.1'
Trying to install sftp-server binary into chroot environment... Warning: sftp-server binary not found
+ sftp connections will not be available for chrooted accounts

WARNING!
Some problems are found during installation of sftp-server binary into chroot environment(see log file: /var/log/plesk/install/ple
sk_17.8.11_installation.log)

Anyone any idea ?
Thanks

 

[toomanylogins]

ran sudo apt-get install openssh-server
still cannot connect sftp

 

[IgorG]

Please check that you have uncommented line

Subsystem sftp internal-sftp

in /etc/ssh/sshd_config file. The `internal-sftp` is an in-process sftp server that requires no support files when used with ChrootDirectory.
Restart sshd service after modifications of /etc/ssh/sshd_config

 

[toomanylogins]

The line Subsystem sftp internal-sftp is not present I have the following

Subsystem sftp /usr/lib/openssh/sftp-server

I commented the above and added Subsystem sftp internal-sftp

When I try and connect via winscp using sftp I get error

Cannot initialize SFTP protocol. Is the host running a SFTP server?

I can connect with scp protocol.