According to their Usage FAQ (https://www.bitvise.com/ssh-server-usage-faq), WinSCP can be configured to work with WinSSHD, by installing Cygwin and seting up WinSCP to use a BASH shell. I have done this on a test box, and I have configured a test user to use a BASH shell. Things work perfect when making a SSH connection with puTTY, but I'm not having luck with configuring WinSCP to make a proper connection.
Has anyone else out there been able to get WinSCP to work with WinSSHD? Any tips would be appreciated. Thanks.