[Xquartz-dev] x11 forwarding, El Capitan

After upgrading to El Capitan, my macs are not able to do x11forwarding. When I ssh -Y to a remote mac host I get the following message: X11 forwarding request failed on channel 0. This indicates that DISPLAY variable set to a local value - I would expect 10 or larger for a remote login. I can ssh -Y to an old Sun computer or a very old mac with no problem. I noticed that in El Capitan system-wide ssh configuration files are now in /etc/ssh. I enabled X11forwarding and included # XAuthLocation added by XQuartz (http://xquartz.macosforge.org) Host * XAuthLocation /opt/X11/bin/xauth in the ssh_config and sshd_config files in /etc/ssh. Has anybody faced this issue with El Capitan and found a solution to it?