On successful connection you would normally get something like this
debug2: resolving "ssh.domain.tld" port 22
debug3: ssh_connect_direct: entering
debug1: Connecting to ssh.domain.tld [IPv4_ADDR] port 22.
debug3: set_sock_tos: set socket 3 IP_TOS 0x48
debug1: Connection established.
The way I read your above log snippet - the ssh daemon on the remote system does not answer the call. My systems are using the exact same version of openssh so I’d say SSH is working as expected, this gives me reason to believe this is a local issue on your system - and most likely not created by an update.
I must assume you have done the obligatory network troubleshooting - if not please use this article to layout the groundwork - [root tip] [How To] Basic network know-how and troubleshooting
The will most likely give you a better idea of where to look.
I recall an issue on my systems - no timeframe remembered - but this issue manifested in a message stating I had too many failed logins. Now this was strange because I didn’t even try to login.
Long story short - I have a large number of ssh-identities and apparently my system was trying all those identities to login to the specific server even though I had a specific identity file associated with the server in my local config - resulting in a failed connection.
After some research I found a way to stop the behavior - by adding the following at the top of my ~/.ssh/config
Host *
IdentityAgent none