The presence of two distinct OpenSSH services in your management console indicates a direct conflict likely caused by a previous manual installation attempt. The official Features on Demand installation natively creates the service named OpenSSH SSH Server. However, your system also shows an Openssh SSHD service currently configured with an automatic startup type under a custom local account. Because this rogue service is likely already running and listening on TCP port 22, the newly installed official Microsoft service immediately crashes with Error 1067 when it attempts to initialize and bind to that exact same port.
To resolve this conflict, you must completely remove the remnants of the previous manual installation. Open an elevated PowerShell session and stop the conflicting service using the command Stop-Service -Name "Openssh SSHD", followed by the command sc.exe delete "Openssh SSHD" to permanently wipe its registration from the system. After removing the service, navigate to the hidden C:\ProgramData\ssh directory. This folder stores the host keys and configuration files, which currently hold conflicting settings or incorrect security permissions from the old installation. Delete all contents within this directory to ensure a clean slate.
Once the rogue service is deleted and the configuration directory is cleared, you can safely start the official OpenSSH SSH Server service. The initial successful startup will automatically generate fresh host keys with the correct system permissions required for the service to function securely. If the official service still refuses to start after completing these cleanup steps, open the Event Viewer and navigate through Applications and Services Logs to the OpenSSH section. The Operational log will provide the precise technical reason for any remaining startup failures.