package openssh-server 1:6.6p1-2ubuntu2.7 failed to install/upgrade: subprocess installed post-installation script returned error exit status 127

I updated xubuntu with systemctl and tried to reinstall ssh and dependencies but it will not install.

ProblemType: Package
DistroRelease: Ubuntu 14.04
Package: openssh-server 1:6.6p1-2ubuntu2.7
ProcVersionSignature: Ubuntu 3.19.0-59.66~14.04.1-generic 3.19.8-ckt19
Uname: Linux 3.19.0-59-generic i686
ApportVersion: 2.14.1-0ubuntu3.19
Architecture: i386
Date: Mon May 16 22:40:47 2016
DuplicateSignature: package:openssh-server:1:6.6p1-2ubuntu2.7:subprocess installed post-installation script returned error exit status 127
ErrorMessage: subprocess installed post-installation script returned error exit status 127
InstallationDate: Installed on 2016-04-28 (18 days ago)
InstallationMedia: Xubuntu 14.04.3 LTS "Trusty Tahr" - Beta i386 (20150805)
RelatedPackageVersions:
 dpkg 1.17.5ubuntu5.6
 apt 1.0.1ubuntu2.13
SSHDConfig: Error: command ['/usr/sbin/sshd', '-T'] failed with exit code 255: Missing privilege separation directory: /var/run/sshd
SourcePackage: openssh
Title: package openssh-server 1:6.6p1-2ubuntu2.7 failed to install/upgrade: subprocess installed post-installation script returned error exit status 127
UpgradeStatus: No upgrade log present (probably fresh install)