macOS Sierra SSH Active Directory login not working
Your question is hard to answer because it would need more details, AD and OS X configuration details as well as Group Policy settings.



In a new Active Directory environment with some joined OS X clients and an OS X server, the set up works as expected.

After creating a global security group SSH-OSXUsers and adding some arbitrary AD users one has to add this network group in macOS' Sharing PrefPane > Remote Login > Only these users > + > Network Groups > SSH-OSXUsers (or in the respective settings in Server.app).

To connect to this server I recommend to use ssh user@hostname or ssh user@fqdn. With a proper PTR record for the OS X server in the reverse DNS tree, it should also work with the IP.

Connecting with a user of the SSH-OSXUsers group who never logged on to the server host, you will get the error Could not chdir to home directory /Users/domainsshuser: No such file or directory because the user's home folder is missing, but you can execute commands.

If you connect with a managed network account or a mobile account user with a home folder on the server host you won't see this message.



One step to get a more detailed ssh error message may be changing the standard error path from /dev/null to /tmp/ssh.stderr in the launch daemon after disabling SIP.