Configuring Chroot for SFTP Users
Internal-sftp require chrooted user home to reside inside root-owned dir:
/some/path/root-owned/user-dir1
/user-dir2
Root-owned dir should have 555 permissions and user-dirs should be created by root and owned by specific user. Inside subdirs user can do anything, but he can't delete or rename user-dir[12].
This is internal-sftp restrictions.