I just wanted to weigh in on this as well.
My Apple TV has been working fine with a changed root password for many months. Yesterday I did an apt-get update/apt-get upgrade, and today I’m running into this issue.
I have a non-jailbroken iPhone, and my Apple TV is behind a router. I strongly doubt that this is malware - all signs point to a software update gone awry, to me anyway.
I’ll re-jailbreak if necessary, but I’m concerned about re-updating software if this may happen again.
In fact, looking at what I upgraded yesterday:
Get:1 http://apt.awkwardtv.org stable/main org.xbmc.xbmc-atv2 11.0-3 [49.0MB]
Get:2 http://apt.saurik.com ios/675.00/main pcre 8.30-5 [176kB]
Get:3 http://apt.saurik.com ios/675.00/main openssh 6.0p1-10 [423kB]
Get:4 http://apt.saurik.com ios/675.00/main mobilesubstrate 0.9.3998 [99.7kB]
The fact that openssh was updated can’t be a coincidence, can it?
Hold the menu and rewind (hold left on the center button) on the Apple remote for about 5 seconds. You will see a remote icon on the top left of your tv screen showing the remote “unpairing”
Fixed my problem.
I updated the Apple TV software to the newest and the SeasonPass software. After updating to the official apple software I was able to jailbreak and ssh without a problem. I was off by 1 day in the download of the jailbreak version. My fault for not posting software versions. very important.