Unable to login to sshd, immediate RESET on connect/auth

[craftxbox]

"OpenSSH for Windows" version
8.0.0.0

Server OperatingSystem
Windows 10 Pro

Client OperatingSystem
Windows 10 Pro

What is failing
Login fails to create tokens, causes the server to crash immediately.

Expected output
To be able to log in to a normal ssh session, and execute commands

Actual output
User mode:

debug1: monitor_child_preauth: craftxbox has been authenticated by privileged process
debug1: monitor_read_log: child log fd closed
debug1: Not running as SYSTEM: skipping loading user profile
CreateProcessAsUserW failed error:1314
fork of unprivileged child failed
debug1: do_cleanup
(exit)

psexec SYSTEM:

get_user_token - unable to generate sshd virtual token, ensure sshd service has TCB privileges
unable to get security token for user sshd
privsep_preauth, fork of unprivileged child failed
debug1: do_cleanup
(exit)

Audit log:

An account failed to log on.

Subject:
	Security ID:		SYSTEM
	Account Name:		LUKE-PC$
	Account Domain:		WORKGROUP
	Logon ID:		0x3E7

Logon Type:			5

Account For Which Logon Failed:
	Security ID:		NULL SID
	Account Name:		sshd_25888
	Account Domain:		VIRTUAL USERS

Failure Information:
	Failure Reason:		User not allowed to logon at this computer.
	Status:			0xC000006E
	Sub Status:		0xC0000070

Process Information:
	Caller Process ID:	0x6520
	Caller Process Name:	C:\PROGRA~1\OpenSSH\OpenSSH-Win64\sshd.exe

Network Information:
	Workstation Name:	-
	Source Network Address:	-
	Source Port:		-

Detailed Authentication Information:
	Logon Process:		Advapi  
	Authentication Package:	Negotiate
	Transited Services:	-
	Package Name (NTLM only):	-
	Key Length:		0

Normally 0xC0000070 would be indicative that something in secpol is blocking the connection, however both NT SERVICE\sshd and SYSTEM are present in all relevant Allow policies

[NoMoreFood]

Do you see the same logs when you run it directly as a service?

[craftxbox]

I'm unsure how I would run it under its service account, how would I?

[maertendMSFT]

Is sshd running as local system context or as NTservice/sshd?

[craftxbox]

I dont have this installation anymore, however it was was running under ntservice/sshd