diff --git a/lib/ansible/plugins/connection/network_cli.py b/lib/ansible/plugins/connection/network_cli.py
index be7624c05d..a3e9e04ccb 100644
--- a/lib/ansible/plugins/connection/network_cli.py
+++ b/lib/ansible/plugins/connection/network_cli.py
@@ -162,7 +162,7 @@ class Connection(ConnectionBase):
             return
 
         p = connection_loader.get('paramiko', self._play_context, '/dev/null')
-        p.set_options(direct={'look_for_keys': bool(self._play_context.password and not self._play_context.private_key_file)})
+        p.set_options(direct={'look_for_keys': not bool(self._play_context.password and not self._play_context.private_key_file)})
         p.force_persistence = self.force_persistence
         ssh = p._connect()
 
@@ -261,6 +261,10 @@ class Connection(ConnectionBase):
         while True:
             data = self._ssh_shell.recv(256)
 
+            # when a channel stream is closed, received data will be empty
+            if not data:
+                break
+
             recv.write(data)
             offset = recv.tell() - 256 if recv.tell() > 256 else 0
             recv.seek(offset)