Sysupgrade bug on rspro?

+ scp -pr bin/targets/ar71xx/generic/lede-ar71xx-generic-ubnt-rspro-squashfs-sysupgrade.bin root@repeater.lan:/tmp/
+ ssh root@repeater.lan '/sbin/sysupgrade -n -v /tmp/lede-*sysupgrade.bin'
Image metadata not found
killall: watchdog: no process killed
Sending TERM to remaining processes ... uhttpd xinetd logread darkstat darkstat ntpd ubusd askfirst logd logread netifd crond 
Sending KILL to remaining processes ... askfirst 
Switching to ramdisk...
Performing system upgrade...
Unlocking kernel ...
Unlocking rootfs ...

Writing from <stdin> to kernel ...  [w]+ ping -c3 repeater.lan
PING repeater.lan ( 56(84) bytes of data.
64 bytes from repeater.lan ( icmp_seq=1 ttl=64 time=2.16 ms
64 bytes from repeater.lan ( icmp_seq=2 ttl=64 time=2.93 ms
64 bytes from repeater.lan ( icmp_seq=3 ttl=64 time=2.86 ms

--- repeater.lan ping statistics ---
3 packets transmitted, 3 received, 0% packet loss, time 2001ms
rtt min/avg/max/mdev = 2.168/2.654/2.933/0.344 ms
+ ssh -t root@repeater.lan 'logread; logread -f'
root@repeater.lan's password: 
Permission denied, please try again.

Now this shouldn't happen. I have ssh keys installed and a preset shadow file. And when I take the factory file and use tftp recovery it boots up fine. Password and key login works.
Is there something I'm doing wrong with sysupgrade?