SSH gone after update to 17

So I ha e been using Kodi 16 with a RPi 3 Model B running OSMC for a few months. However, after updating to 17 all ssh/sftp functionality was completely gone. It is impossible to connect to Kodi via ssh (tried from multiple clients in the same LAN). The funny thing is that the ssh service seems to be running normaly.

Code:
sudo sysctl status ssh.service

outputs that the service is active and running.

If I restart the Pi, sometimes I can connect via ssh immediately after restarting but only right away after the Pi fires up. Wait a couple of minutes and the connection is denied again (even though the service is running).

Any ideas would be highly appreciated Smile