Please try connecting using "keyboard-interactive" authentication method:
// Create an instance of SshParameters class
// to specify desired arguments.
SshParameters par = new SshParameters();
// Force "keyboard-interactive" authentication method.
par.AuthenticationMethods = SshAuthenticationMethod.KeyboardInteractive;
// Create an instance of Ssh object
Ssh client = new Ssh();
// Connect to the server.
// The third argument refers to the parameters class.
client.Connect(serverName, 22, par);
// Authenicate.
client.Login(userName, password);
Does this make any difference?