I’m trying to restrict the SFTP user to that home directory adding the below commands to the existing sshd_config file in QNX 6.5.0. But unable to restrict the user (e.g. user1) to his home directory and able to navigate to the root folder(/) in the QNX 6.5.0 system.
Have you tried doing this? You have most of what’s listed in the link but there are some steps you appear not to have done (unless you didn’t show that you did those)
Looking again, I found this QNX article on setting up a chroot environment for ftp that covers QNX 6.5. Presumably you can do the same for sftp. It’s slightly different that the first link in that it appears you need all the binaries and libraries for the commands you want the user to be able to run to be located in the jailed environment.