SCP instead of SFTP

Hi all,

I am using this ansible.cfg

[defaults]
host_key_checking=false
ansible_user=ich
ansible_ssh_private_key_file=/home/mylocation/key
remote_user = root
transport=smart

[ssh_connection]
scp_if_ssh=True

When I tail /var/log/secure on the remote machine I see the login attempt but it is trying sftp instead of scp.

Jan 25 09:52:36 hostx sshd[7164]: Accepted publickey for root from 10.10.10.10 port 58673 ssh2
Jan 25 09:52:36 hostx sshd[7164]: subsystem request for sftp
Jan 25 09:52:36 hostx sshd[7164]: subsystem request for sftp failed, subsystem not found

Anything I am missing?

a lot of information .... can you show the command ansible runs with
-vvvv? what versions of ansible/python/OS? what is minimal way to
reproduce the issue?

FYI, 'smart' means ansible will use ssh if it deems it can, otherwise
it can fallback to paramiko which does not respect the setting.

Using the following ansible/python/OS:

Python 2.7.9
ansible 2.0.0.2
OS Debian 7.8