SSH apparently not reading keys inside ~/.ssh
debug1: identity file /home/manuth/.ssh/dqar-rsa type 1
Says it read the file successfully. The failure is somewhere else.
ssh_exchange_identification: Connection closed by remote host
This is the real problem. You can't establish SSH connection to the remote host for some reason. You are probably blacklisted using /etc/hosts.deny
or the server is failing to accept the connections and initiate SSH protocol for other reasons (missing directories, disk failures, full disk, etc.). The logs from the server will tell you more.
Nov 7 13:51:32 dqar sshd [11316]: fatal: Missing privilege separation directory: /var/empty
Explains it pretty much. You need to create this directory if it was removed for some reasons and set proper permissions (not writable by any other users than root).
So the reason was that, somehow, there was no /var/empty
. I created it back from this forum post (I know it's for Juniper, but it's working on this FreeBSD as well):
http://forums.juniper.net/t5/Ethernet-Switching/Missing-privilege-separation-directory-var-empty/td-p/173832