"Server refused to allocate pty" on New LXC template(s)

NOTE: This seems to happen only on OpenVZ template(s) that's used on LXC, like Cenots 6 32-bit. All 64-bit LXC templates are now made for LXC so should not be this issue.

If you ever get "Server refused to allocate pty" while connecting with SSH to the container, try the following.

1. Login to our web panel
2. Click "NoVNC Console" and login as root
3. Then edit /etc/rc.sysinit and look for this line: /sbin/start_udev
Remove that line and restart the container and you might be good to go!

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