What permissions do you have set on C:\ProgramData\ssh? Anything other than Administrators and System?
I checked my test VM where I have SSH installed, and it had the same error. I don't use that machine very much, so I have no idea when the problem started.
I found this link. https://github.com/PowerShell/Win32-OpenSSH/issues/2287
It does seem to be permissions related. I had granted access to other accounts. When I reset the permissions back to just system and administrators then the service started.
Here is what I ran from a "run as administrator" command prompt.
icacls.exe "C:\ProgramData\ssh" /reset /t
icacls.exe "C:\ProgramData\ssh" /inheritance:r /inheritance:d /grant "NT AUTHORITY\SYSTEM:(OI)(CI)(F)" /grant "BUILTIN\Administrators:(OI)(CI)(F)"