Copssh version 7.0.0 installers come with the latest Cygwin 3.x libraries, introducing major and backwards-incompatible changes, requiring a reinstallation. You can follow our instructions here, to refresh your installation withour losing your existing setup.
Thanks to major changes in Cygwin, Copssh doesn't need a dedicated service account any longer and is run by the local system account.
The logic behind the sftp home directory isolation is now improved by introducing symbolic link folders: Each activated user gets a symbolic link folder /home/___username , pointing to the home directory provided via the User Activation wizard, resulting with a more stable and less error-prone solution. A small patch(link is external) avoiding messages "bad ownership or modes for chroot directory" (non-relevant for a Copssh installation), is also introduced. NB! As always mentioned, even if the home directory isolation works as expected, you should use NTFS permissions on your file systems to achieve better security.