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SSH to private instance asks for (user@compute.instanceID) password

I'm experiencing a strange issue where SSH'ing to a private GCE instance over Identity Aware Proxy responds with: (user@compute.12345678912345) Password: 

There is no known password for the instance, and nothing I input in this field works. What's especially odd about this issue is that, after multiple retries, it will randomly establish connection.

My SSH command is: gcloud compute ssh --tunnel-through-iap --zone "us-west1-a" --ssh-key-file=key user@instanceName 

Other notes:
- This is a Palo Alto Panorama Management Server that was created with the 

panorama-byol-1000 image.
- I am attaching the public SSH key to the instance through Terraform metadata
- The key in --ssh-key-file=key is the openssh private key for the instance

Could this be related to disk space? Or with SSH key propagation to the instance's ~/.ssh/authorized_key files? Any other thoughts?

I've read through every forum I could find and none of the suggestions netted any results.
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