Hello Harish,
unfortunately the same error.
I have a question regarding the Public Key. I created a public key by myself for testing. I saw, that there is only the key included, no certificate.
Version of PI is PI 7.1 EHP 1.
Modul ist sftp + PGP ADD ON 1Sp02
In the parameter OwnPublicKey it must be assign to the certificate or to the key..
attached the configuration of Encryption:
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Image may be NSFW.
Clik here to view.
Thanks