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'Channel is not opened' error in git repository on bitbucket.org

In July 2016, Bitbucket Cloud has made changes to ssh protocol handling disabling multiplexing for ssh connections. As a result, Git checkout for VCS roots configured with ssh:// protocol in TeamCity fails with "channel is not opened." error (related TeamCity issue).

As a workaround, install an updated version of git-plugin corresponding to your TeamCity version: 9.1.x9.0.x or 8.1.x (or 10 EAP) - use artifacts from the latest successful build. To install the plugin, put downloaded jetbrains.git.zip into <TeamCity Data Directory>/plugins and restart the TeamCity server.