/var/empty/sshd must be owned by root and not group or world-writable

Check the ownership and permissions on /var/empty and /var/empty/sshd.

They must be owned by root (chown root /var/empty; chown root /var/empty/sshd) and not be writable by anyone except root.

chmod go-w /var/empty/sshd;

chmod go-w /var/empty