Wrong principal in request (SSH/ GSSAPI/Kerberos/Debian)
Solution 1:
Found this while Googling for exactly the same error on a new server build - pointed me in the right direction :)
In my case, I had incorrect reverse DNS - when I updated this and cleared my caching nameservers' caches, it worked.
Solution 2:
I have to be more attentive. There was a line left in /etc/hosts resolving 127.0.0.1 to FQDN (now commented out):
kdc:~$ cat /etc/hosts
127.0.0.1 localhost
#127.0.0.1 kdc.example.com kdc
172.16.3.3 kdc.example.com kdc
After purging the related principals from DB and keytab and restarting both VMs, everything works as desired. Ufff...