3rd party ssh clients and servers for that matter, sometimes use a different formatted keys and/or different handshake sequences and cause failures like you have encountered. I am not familiar with IP*works suite of tools but we had a very similar issue with ssh and scp in the past where the vendor we were trying to connect to, was using a different and proprietary ssh server, which did not like the authentication attempts from openssh client we were using.
Short of contacting the support for IP*works software vendor, your chances of finding someone here using the same setup, is quite slim, if you ask me.
Good luck
Mel
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UNIX because I majored in cryptology...