As a workround: adding one line in /etc/ssh/sshd_config
below
#PubkeyAuthentication yes
Make it read as:
#PubkeyAuthentication yes
PubkeyAcceptedKeyTypes=+ssh-rsa
and then do a
$ grep Pub /etc/ssh/sshd_config
#PubkeyAuthentication yes
PubkeyAcceptedKeyTypes=+ssh-rsa
$ sudo systemctl restart sshd
It makes DO12.18 work with SFTP of Ubuntu 22.04 again.
But, it allows deprecated ssh-rsa auth method, which give your server a tiny risk of being attacked in theory.