User permissions for bootstrapping clients

Hi all I am having a bit of a problem with bootstraping clients that I am hoping I can get some help with.
I have started to setup SUSE Manager 4.1 to get an idea of how it works and sort out the requirements/design and everything was working with no problems but now some issue have come up.
We have ssh access to root disabled so I have created an update user on the servers that are being used for testing and have given that user sudo with no password required which worked and allowed me to add clients.
After a few months I have come back to carry on with this so I have applied all the updates to the manager server and the offsite proxy server and now I cannot add clients this way which makes it look like an update to suse manager may of changed something.
Now when I try to add a bootstrap client unless I go onto the server first and allow root to login directly via ssh the salt client fails to install. There are permission errors which when having a look at the directories being reported all have ownership of root so are not accessible to my update user.
These are the ones I have found so far.
drwx------ 7 root root 4096 Feb 22 21:06 py2
drwx------ 4 root root 4096 Feb 22 21:06 py26
drwx------ 5 root root 4096 Feb 22 21:06 py3
drwx------ 6 root root 4096 Feb 22 21:06 pyall
drwx------ 3 root root 4096 Feb 22 21:06 running_data
Does anyone have any ideas why this may now not be able to install the salt client as I am now stuck with not being able to add a client.

This is strange behavior. Please contact Support so that a bug is opened in case it’s necessary.