I can select the directory individually (without selecting "Set group, owner and permissions recursively" option and change the directory permissions without an error. If I specify 0600 permissions and choose the "Add X to directories" option for the .ssh directory, without the "Set group, owner and permissions recursively" option, there is no error. Only when the recursive option is selected is there a permissions error.
I could not find a similar known issue so I’m reporting this here as a bug. The following screen shots show the action and its results.
Results error message:
Command 'chgrp -R "bwilson" ".ssh"' failed with return code 1 and error message
chgrp: cannot access `.ssh/.PUBLIC KEYS': Permission denied
chgrp: changing group of `.ssh/authorized_keys': Permission denied
chgrp: changing group of `.ssh/authorized_keys.bak': Permission denied
chgrp: cannot access `.ssh/.DO NOT REMOVE': Permission denied.
The .ssh directory is left with 0600 permissions when I click on the abort button.