This is your error log: fatal: bad ownership or modes for chroot directory component / This means that you need to make sure to fulfil the emphasised part of ...
The issue was that every directory subcomponent should have write access only for root. In my case, / had write permissions for group. but /home and /home/xxx- ...
I'm trying to setup an sftp server and I want to be able to place the user in a specific unique directory, based on their username, without using /home.