$ ssh <IP> ECDSA key fingerprint is SHA256:… Are you sure you want to continue connecting (yes/no/[fingerprint])? yes mylocalname@<IP>: Permission denied (publickey).
I.e. I’d think from the SSH key entry description that the Droplet created would be set up with an acct in the username of the public key and having sudo, or at least that there’d be a step-by-step guide in a more obvious place.
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Giving root in the name field under the public key gives you the existing root. From there, one might create another acct, give it sudo, copy/chown/chgrp the /root/.ssh dir to it, verify it all works, then rm /root/.ssh/authorized_keys .