can't ssh to vyos on openstack icehouse

I have installed Vyos on Openstack icehouse, but not able to ssh into vyos,

ssh log shows following output:

root@controller:~# ssh -i .ssh/id_rsa.pub vyos@192.168.1.23 -vv[/b]
OpenSSH_6.6.1, OpenSSL 1.0.1f 6 Jan 2014
debug1: Reading configuration data /etc/ssh/ssh_config
debug1: /etc/ssh/ssh_config line 19: Applying options for *
debug2: ssh_connect: needpriv 0
debug1: Connecting to 192.168.1.23 [192.168.1.23] port 22.
debug1: Connection established.
debug1: permanently_set_uid: 0/0
debug1: identity file .ssh/id_rsa.pub type 1
debug1: identity file .ssh/id_rsa.pub-cert type -1
debug1: Enabling compatibility mode for protocol 2.0
debug1: Local version string SSH-2.0-OpenSSH_6.6.1p1 Ubuntu-2ubuntu2
debug1: Remote protocol version 2.0, remote software version OpenSSH_5.6
debug1: match: OpenSSH_5.6 pat OpenSSH_5* compat 0x0c000000
debug2: fd 3 setting O_NONBLOCK
debug1: SSH2_MSG_KEXINIT sent
debug1: SSH2_MSG_KEXINIT received
debug2: kex_parse_kexinit: curve25519-sha256@libssh.org,ecdh-sha2-nistp256,ecdh-sha2-nistp384,ecdh-sha2-nistp521,diffie-hellman-group-exchange-sha256,diffie-hellman-group-exchange-sha1,diffie-hellman-group14-sha1,diffie-hellman-group1-sha1
debug2: kex_parse_kexinit: ssh-rsa-cert-v01@openssh.com,ssh-rsa-cert-v00@openssh.com,ssh-rsa,ecdsa-sha2-nistp256-cert-v01@openssh.com,ecdsa-sha2-nistp384-cert-v01@openssh.com,ecdsa-sha2-nistp521-cert-v01@openssh.com,ssh-ed25519-cert-v01@openssh.com,ssh-dss-cert-v01@openssh.com,ssh-dss-cert-v00@openssh.com,ecdsa-sha2-nistp256,ecdsa-sha2-nistp384,ecdsa-sha2-nistp521,ssh-ed25519,ssh-dss
debug2: kex_parse_kexinit: aes128-ctr,aes192-ctr,aes256-ctr,arcfour256,arcfour128,aes128-gcm@openssh.com,aes256-gcm@openssh.com,chacha20-poly1305@openssh.com,aes128-cbc,3des-cbc,blowfish-cbc,cast128-cbc,aes192-cbc,aes256-cbc,arcfour,rijndael-cbc@lysator.liu.se
debug2: kex_parse_kexinit: aes128-ctr,aes192-ctr,aes256-ctr,arcfour256,arcfour128,aes128-gcm@openssh.com,aes256-gcm@openssh.com,chacha20-poly1305@openssh.com,aes128-cbc,3des-cbc,blowfish-cbc,cast128-cbc,aes192-cbc,aes256-cbc,arcfour,rijndael-cbc@lysator.liu.se
debug2: kex_parse_kexinit: hmac-md5-etm@openssh.com,hmac-sha1-etm@openssh.com,umac-64-etm@openssh.com,umac-128-etm@openssh.com,hmac-sha2-256-etm@openssh.com,hmac-sha2-512-etm@openssh.com,hmac-ripemd160-etm@openssh.com,hmac-sha1-96-etm@openssh.com,hmac-md5-96-etm@openssh.com,hmac-md5,hmac-sha1,umac-64@openssh.com,umac-128@openssh.com,hmac-sha2-256,hmac-sha2-512,hmac-ripemd160,hmac-ripemd160@openssh.com,hmac-sha1-96,hmac-md5-96
debug2: kex_parse_kexinit: hmac-md5-etm@openssh.com,hmac-sha1-etm@openssh.com,umac-64-etm@openssh.com,umac-128-etm@openssh.com,hmac-sha2-256-etm@openssh.com,hmac-sha2-512-etm@openssh.com,hmac-ripemd160-etm@openssh.com,hmac-sha1-96-etm@openssh.com,hmac-md5-96-etm@openssh.com,hmac-md5,hmac-sha1,umac-64@openssh.com,umac-128@openssh.com,hmac-sha2-256,hmac-sha2-512,hmac-ripemd160,hmac-ripemd160@openssh.com,hmac-sha1-96,hmac-md5-96
debug2: kex_parse_kexinit: none,zlib@openssh.com,zlib
debug2: kex_parse_kexinit: none,zlib@openssh.com,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-sha256,diffie-hellman-group-exchange-sha1,diffie-hellman-group14-sha1,diffie-hellman-group1-sha1
debug2: kex_parse_kexinit: ssh-rsa,ssh-dss
debug2: kex_parse_kexinit: aes128-ctr,aes192-ctr,aes256-ctr,3des-cbc
debug2: kex_parse_kexinit: aes128-ctr,aes192-ctr,aes256-ctr,3des-cbc
debug2: kex_parse_kexinit: hmac-sha1,hmac-sha1-96
debug2: kex_parse_kexinit: hmac-sha1,hmac-sha1-96
debug2: kex_parse_kexinit: none,zlib@openssh.com
debug2: kex_parse_kexinit: none,zlib@openssh.com
debug2: kex_parse_kexinit:
debug2: kex_parse_kexinit:
debug2: kex_parse_kexinit: first_kex_follows 0
debug2: kex_parse_kexinit: reserved 0
debug2: mac_setup: setup hmac-sha1
debug1: kex: server->client aes128-ctr hmac-sha1 none
debug2: mac_setup: setup hmac-sha1
debug1: kex: client->server aes128-ctr hmac-sha1 none
debug1: SSH2_MSG_KEX_DH_GEX_REQUEST(1024<7680<8192) sent
debug1: expecting SSH2_MSG_KEX_DH_GEX_GROUP
debug2: bits set: 4074/8192
debug1: SSH2_MSG_KEX_DH_GEX_INIT sent
debug1: expecting SSH2_MSG_KEX_DH_GEX_REPLY
debug1: Server host key: RSA 9f:e3:89:6e:0c:3b:16:94:16:d8:d0:23:19:a0:cc:ff
debug1: Host ‘192.168.1.23’ is known and matches the RSA host key.
debug1: Found key in /root/.ssh/known_hosts:5
debug2: bits set: 4002/8192
debug1: ssh_rsa_verify: signature correct
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: Roaming not allowed by server
debug1: SSH2_MSG_SERVICE_REQUEST sent
debug2: service_accept: ssh-userauth
debug1: SSH2_MSG_SERVICE_ACCEPT received
debug2: key: .ssh/id_rsa.pub (0x7ff9c8115fb0), explicit
debug1: Authentications that can continue: publickey,keyboard-interactive
debug1: Next authentication method: publickey
debug1: Offering RSA public key: .ssh/id_rsa.pub
debug2: we sent a publickey packet, wait for reply
debug1: Authentications that can continue: publickey,keyboard-interactive
debug2: we did not send a packet, disable method
debug1: Next authentication method: keyboard-interactive
debug2: userauth_kbdint
debug2: we sent a keyboard-interactive packet, wait for reply
debug2: input_userauth_info_req
debug2: input_userauth_info_req: num_prompts 1
Password:

when i input password following statements are displayed,

debug1: Authentications that can continue: publickey,keyboard-interactive
debug2: userauth_kbdint
debug2: we sent a keyboard-interactive packet, wait for reply
debug2: input_userauth_info_req
debug2: input_userauth_info_req: num_prompts 1
Password:

are there any settings need to be done on vyos?

Below process is used for botting vyos on openstack icehouse.

glance image-create --name vyos --disk-format raw --container-format bare --is-public True --progress < vyos.img

where vyos.img is taken from Oracle VM Box,

#ssh-keygen

#nova keypair-add --pub-key ~/.ssh/id_rsa.pub demo-key1

nova boot --flavor 1 --image vyos --nic net-id=6b39ed30-9c00-4402-b0a4-5b73e1ca1992 --security-group default --key-name demo-key1 vyos1

note: am able to login into console of vyos and configure it.