New install pubkeys become octothorp / hash

Docker Version: 17.03.0-ce, build 60ccb22
Docker-gitlab Version: 9.2.5

Been using docker-gitlab for awhile now maybe even from the first release. I have run many sites using this repo. Today I wanted to setup a personal one at home. I installed everything like I normally do and created a project. However I was not allowed to clone it, after some investigating it turns out when I add my pubkey when I inspect the authorized_keys file inside the container my keys looks like this:

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Anyone ever run into this?

Start by reproducing the reported setup with Docker 17.03.0-ce and docker-gitlab 9.2.5, then inspect how the pubkey is written to authorized_keys inside the container. Compare the stored key with the submitted key and verify that cloning the project works once authorized_keys contains the expected value.