Sorry, the Release number should have been 81.el6.

Another correction. sftp-server implements chroot via the necessary files and directories to support the user's session. internal-sfp only requires the directory location and correct permissions.

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I tested the umask functionality with openssh-5.3p1-94.el6
using following line in sshd_config:
  Subsystem sftp internal-sftp -u 0077

# service sshd restart

$ sftp user@localhost
Connecting to localhost...
user@localhost's password: 
sftp> put /tmp/testfile
Uploading /tmp/testfile to /home/user/testfile
/tmp/testfile                                                               100%    0     0.0KB/s   00:00    
sftp> ls -l testfile
-rw-------    0 501      501             0 Mar 11 08:01 testfile
sftp> ^D

The above seem to be correct.

I am not sure how to understand chgrp, chown, and chmod in this context. I am not aware of such options in sftp-server.

This doesn't look like a bug at all and I tend to close this as WORKSFORME. It seems that there's some confusion about what umask(2) is.

rhel-6 # grep Subsys /etc/ssh/sshd_config
Subsystem sftp internal-sftp -l VERBOSE -f LOCAL6 -u 0000

client $ touch file; chmod 777 file

client $ sftp root@rhel-6
Connected to rhel-6-preup.
sftp> put file
Uploading file to /root/file
file                                         100%    0     0.0KB/s   00:00    
sftp> ls -l file
-rwxrwxrwx    0 0        0               0 Mar 12 12:38 file
sftp> rm file
Removing /root/file

--------

rhel-6 # grep Subsys /etc/ssh/sshd_config
Subsystem sftp internal-sftp -l VERBOSE -f LOCAL6 -u 0777

rhel-6 # service sshd restart

client $ touch file; chmod 777 file

client $ sftp root@rhel-6
Connected to rhel-6-preup.
sftp> put file
Uploading file to /root/file
file                                         100%    0     0.0KB/s   00:00    
sftp> ls -l file
----------    0 0        0               0 Mar 12 12:40 file
sftp> rm file
Removing /root/file

Regarding the patch, there's a problematic copyright clause, which I'm not sure we can accomplish. 

The patch adds new configuration options to sshd_config instead using command line arguments similar to current -u option. 

The upstream recently [1] added an ability to white/blacklist sftp protocol requests. But this is not even released yet and there's no  assurance that it's backportable to rhel-6 openssh package.

[1] https://anongit.mindrot.org/openssh.git/commit/?id=6eaeebf27d92f39a38c772aa3f20c2250af2dd29

(In reply to Petr Lautrbach from comment #10)
> This doesn't look like a bug at all and I tend to close this as WORKSFORME.
> It seems that there's some confusion about what umask(2) is.
> 
> rhel-6 # grep Subsys /etc/ssh/sshd_config
> Subsystem sftp internal-sftp -l VERBOSE -f LOCAL6 -u 0000
> 
> client $ touch file; chmod 777 file
> 
> client $ sftp root@rhel-6
> Connected to rhel-6-preup.
> sftp> put file
> Uploading file to /root/file
> file                                         100%    0     0.0KB/s   00:00  
> 
> sftp> ls -l file
> -rwxrwxrwx    0 0        0               0 Mar 12 12:38 file
> sftp> rm file
> Removing /root/file
> 
> --------
> 
> rhel-6 # grep Subsys /etc/ssh/sshd_config
> Subsystem sftp internal-sftp -l VERBOSE -f LOCAL6 -u 0777
> 
> rhel-6 # service sshd restart
> 
> client $ touch file; chmod 777 file
> 
> client $ sftp root@rhel-6
> Connected to rhel-6-preup.
> sftp> put file
> Uploading file to /root/file
> file                                         100%    0     0.0KB/s   00:00  
> 
> sftp> ls -l file
> ----------    0 0        0               0 Mar 12 12:40 file
> sftp> rm file
> Removing /root/file

I think this shows pretty well that it works fine the way it is.  Unless the OP can show something really is broken that we're missing, I second the motion to close this bug as "SEZWHO?"  OK, well WORKSFORME will do, I suppose.  :-)

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