See URL.
I'm not sure how long that this has been fixed, but it certainly works on 4.0 (at least if the /var/empty/dev/log exists correctly)
I don't think sshd should require a /dev/log in the chroot. I was planning to look at the logging from the unprivileged sshd (including this bug) after the 4.1 release.
Change all RESOLVED bug to CLOSED with the exception of the ones fixed post-4.4.