SFTP on macOS fails to authenticate

OS: MacOS Big Sur (11.6) VLC: 3.0.16 (I also tried the 4.0.0 beta)

When trying to steam an audio file over sftp://, I cannot get past the authentication dialog. I'm entering the correct username and password, yet VLC continues to show the authentication dialog over and over. Running VLC with --verbose=2 reveals very little

[00007fc169c12130] main stream debug: connection succeeded (socket = 13)
[00007fc169c12130] sftp stream debug: Unable to check the remote host
[00007fc169c12130] sftp stream debug: Public key authentication failed
[00007fc169c12130] sftp stream warning: sftp auth failed for myuser

Using the sftp or ssh through the Terminal with the exact same username & password does work. The URI I'm plugging into File > Open Network is also correct

sftp://username@hostaname:/path/to/file.wav

The server logs show that VLC is establishing a connection, but I never any messages from PAM in /var/log/secure, however when I do see the following when I close VLC

Oct 25 16:01:04 <hostname> sshd[<pid>]: Connection closed by <ip address> port <port> [preauth]

So it would seem that VLC is at least making an SSH connection, but never sending any credentials?