After changing the permissions, I don't get past this error
Most likely you changed the permission of the directory .ssh. This breaks SSH security. You should be able to create a startup script to change the directory /home/<username>/.ssh
to 700.
Go to the Google Cloud Console
Go to Compute Engine -> VM instances
Stop the VM instance
Click the Edit button
Scroll down to the section Custom metadata
For the key enter startup-script
Enter the following for the value replacing <username>
with your username:
#! /bin/bash
chmod 700 /home/<username>/.ssh
Restart the instance
Another method is to use the VM serial console: