Yubikey Card Error "sign_and_send_pubkey: signing failed: agent refused operation"

[Lawrence Larabee]

> I've got a new Yubikey NEO that I am trying to set up for SSH authentication [...] PIN entry works correctly, but after this everything fails with an error 100663404 and returns "signing failed: agent refused operation" 

For closure, this problem has been solved. I had too many PIN failures, so the stick was rejecting further attempts. Resetting the pin counter using gnupg --card-edit, admin, passwd fixed the problem. Now I am able to use my Yubikey and gpg-agent for SSH login. 

LL 
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