This means that the plugin tried to login with user name and password, and NOT with a certificate.The dialog says "Error: Authentication by password failed"
There is a description in the first post of this thread how to convert a key from Putty format to OpenSSH PUB/PEM format:
1. Start puttygen.exe (part of putty installation)
2. Load your Putty key into it
3. Do NOT click on "Save public key", it creates an
incompatible key! Instead, select the text in the
section "Public key for pasting into OpenSSH...
and press Ctrl+C (=Copy to clipboard)
4. Create a new file with extension .pub (Shift+F4 in
Total Commander) and press Ctrl+V (=Paste)
5. Choose "Export SSH key" from the "Conversions" menu
to save the *.pem file.