Earlier quoted context omitted.
PCI requires multi-factor auth these days, so you’ll likely find now the ssh password will be your password plus a OTP at the end.
PCI DSS from 4.0 actually have something called customized approach for everything. If you can prove and the QSA agrees that you fullfill the goal of a requirement, you can be quite flexible. Example i am doing things like not using passwords at all and only passkeys, or only ssh keys protected by hardware security key etc. Together with agents trying to verify the devices connected are company owned and hardened in…
Ie If someone broke into your office, opened computer, inserted the hardware security key, would they get in? Or is there something else non-physical going on? Like the initial login is password + security key, and you can demonstrate the ssh keys never leave the secured PCs etc.