svn update: "permission denied, please try again"

Something got broken with 2.0.0 RC1. I have always been able to do ALT-S ALT-U to update but in the latest version I get the following:

{{
15:01 Executing in /home/user/Projects/g3latest: svn update --non-interactive trunk
Permission denied, please try again.
Permission denied, please try again.
Permission denied (publickey,password).
svn: Network connection closed unexpectedly
The process terminated with exit code 1.
}}

Yet, I can execute "svn update --non-interactive trunk" without any issue in console. I don't use "authentication" fields in Qt creator's preferences my ssh key is in the keyring. But filling those fields doesn't help.

My other SVN applications all work correctly.