SSH: Host doesn't check for clients private Key? [duplicate]

I just installed a fresh Ubuntu 20.04 and also openssh-server, but somehow it is possible to establish a ssh connection with password only.

There are two user on this host machine. Both have an authorized_keys file with their public key in ~/.ssh/ directory.

I know the password of the other user but I don't have his private key on my machine. Somehow I can log into his account. Just to be clear, he gave me his password to test this.

I downloaded the "fresh" config from here and compared the differences in the sshd_config file, since this is the host-side configuration file.

As far as I know, I just changed X11Forwarding to yes and uncommented it.

The following is my sshd_config file on the host machine. Is there anything wrong which could be the cause of this problem?

#   $OpenBSD: sshd_config,v 1.103 2018/04/09 20:41:22 tj Exp $

# This is the sshd server system-wide configuration file.  See
# sshd_config(5) for more information.

# This sshd was compiled with PATH=/usr/bin:/bin:/usr/sbin:/sbin

# The strategy used for options in the default sshd_config shipped with
# OpenSSH is to specify options with their default value where
# possible, but leave them commented.  Uncommented options override the
# default value.

Include /etc/ssh/sshd_config.d/*.conf

#Port 22
#AddressFamily any
#ListenAddress 0.0.0.0
#ListenAddress ::

#HostKey /etc/ssh/ssh_host_rsa_key
#HostKey /etc/ssh/ssh_host_ecdsa_key
#HostKey /etc/ssh/ssh_host_ed25519_key

# Ciphers and keying
#RekeyLimit default none

# Logging
#SyslogFacility AUTH
#LogLevel INFO

# Authentication:

#LoginGraceTime 2m
#PermitRootLogin prohibit-password
#StrictModes yes
#MaxAuthTries 6
#MaxSessions 10

#PubkeyAuthentication yes

# Expect .ssh/authorized_keys2 to be disregarded by default in future.
#AuthorizedKeysFile .ssh/authorized_keys .ssh/authorized_keys2

#AuthorizedPrincipalsFile none

#AuthorizedKeysCommand none
#AuthorizedKeysCommandUser nobody

# For this to work you will also need host keys in /etc/ssh/ssh_known_hosts
#HostbasedAuthentication no
# Change to yes if you don't trust ~/.ssh/known_hosts for
# HostbasedAuthentication
#IgnoreUserKnownHosts no
# Don't read the user's ~/.rhosts and ~/.shosts files
#IgnoreRhosts yes

# To disable tunneled clear text passwords, change to no here!
#PasswordAuthentication yes
#PermitEmptyPasswords no

# Change to yes to enable challenge-response passwords (beware issues with
# some PAM modules and threads)
ChallengeResponseAuthentication no

# Kerberos options
#KerberosAuthentication no
#KerberosOrLocalPasswd yes
#KerberosTicketCleanup yes
#KerberosGetAFSToken no

# GSSAPI options
#GSSAPIAuthentication no
#GSSAPICleanupCredentials yes
#GSSAPIStrictAcceptorCheck yes
#GSSAPIKeyExchange no

# Set this to 'yes' to enable PAM authentication, account processing,
# and session processing. If this is enabled, PAM authentication will
# be allowed through the ChallengeResponseAuthentication and
# PasswordAuthentication.  Depending on your PAM configuration,
# PAM authentication via ChallengeResponseAuthentication may bypass
# the setting of "PermitRootLogin without-password".
# If you just want the PAM account and session checks to run without
# PAM authentication, then enable this but set PasswordAuthentication
# and ChallengeResponseAuthentication to 'no'.
UsePAM yes

#AllowAgentForwarding yes
#AllowTcpForwarding yes
#GatewayPorts no
X11Forwarding yes
#X11DisplayOffset 10
#X11UseLocalhost yes
#PermitTTY yes
PrintMotd no
#PrintLastLog yes
#TCPKeepAlive yes
#PermitUserEnvironment no
#Compression delayed
#ClientAliveInterval 0
#ClientAliveCountMax 3
#UseDNS no
#PidFile /var/run/sshd.pid
#MaxStartups 10:30:100
#PermitTunnel no
#ChrootDirectory none
#VersionAddendum none

# no default banner path
#Banner none

# Allow client to pass locale environment variables
AcceptEnv LANG LC_*

# override default of no subsystems
Subsystem   sftp    /usr/lib/openssh/sftp-server

# Example of overriding settings on a per-user basis
#Match User anoncvs
#   X11Forwarding no
#   AllowTcpForwarding no
#   PermitTTY no
#   ForceCommand cvs server