ssh is not authenticating in Tabby but works from any other terminal

[sim4dim]

I am using Tabby 1.0.207 under MacOS 14.4.1 and password auth does not work for some hosts from tabby only - works from iTerm or terminal
I am getting:

SSH Connecting to 10.155.49.232
SSH Host key fingerprint:
SSH ecdsa-sha2-nistp256 uNjkSJobYTfppXbRoXe70IthEq3yVJvDmo45hzP0J1I=
SSH Loading private key: id_rsa
SSH Keyboard-interactive auth requested:
SSH Make sure xauth is installed on the remote side

SSH Connecting to 10.155.49.232
SSH Host key fingerprint:
SSH ecdsa-sha2-nistp256 uNjkSJobYTfppXbRoXe70IthEq3yVJvDmo45hzP0J1I=
SSH Loading private key: id_rsa
SSH Keyboard-interactive auth requested:
SSH Make sure xauth is installed on the remote side
X Remote rejected opening a shell channel: Error: Unable to request X11