Issue
I created a droplet on digitalocean, created a sudo-user and made ssh provision to access the droplet from my VScode temrminal. On trying to access from the terminal, I got a dialog prompting me to "Enter password to unlock the private key".
Solution
Turned out that while generating the ssh key, the passphrase that was entered, was exactly the password being requested.
Answered By - Chukwunazaekpere Answer Checked By - Marie Seifert (WPSolving Admin)