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https://bugs.launchpad.net/bugs/801123
Title:
sshd init script does not use the option --pidfile
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So again, the option --pidfile is not used in the init script,
because it's value gets overwritten by sshd_config settings.
Well, its not really overwritten, --pidfile to 'start-stop-daemon' is
not intending to influence sshd's behavior. As discussed in bug 277120
that you referenced, It is