Remote folder connection fails with "Host denied (verification failed)" for specific hostname

Describe the bug

Connecting to a remote folder via SSH fails with "Connection failed: Host denied (verification failed)" for a specific hostname (frigate.ahfp), but connecting to the same host using a different hostname format (frigate.ahfp.local) works fine.

Steps to reproduce

1. Add a remote folder connection using hostname root@frigate.ahfp or root@pve.ahfp
2. Connection fails with "Host denied (verification failed)"
3. Add the same connection using frigate.ahfp.local instead, so does orangepi@wait-room-kiosk.ahfp
4. Connection succeeds

Expected behavior

Both hostname formats should work, or the error message should indicate what is wrong with the hostname.

Additional context

• SSH to the host works fine in the terminal
• Signing out and back in does not fix it
• Deleting and re-adding the connection does not fix it
• Net log shows a 401 from the claude.ai API when attempting to register the connection with the failing hostname
• Request ID from net log: req_011Cbc9DQ6wqdwW7MUiH2QYV
• Claude Code version: 1.9659.2 (Electron 41.6.1)
• OS: Windows 11