diff --git a/api-tests/Makefile b/api-tests/Makefile
index 85af0f3609..4cbd6a120c 100644
--- a/api-tests/Makefile
+++ b/api-tests/Makefile
@@ -15,6 +15,9 @@ run:
 	go test -count=1 -p 1 -v ./... 2>&1 | tee pmm-api-tests-output.txt
 	cat pmm-api-tests-output.txt | bin/go-junit-report > pmm-api-tests-junit-report.xml
 
+run-dev:
+	go test -count=1 -p 1 -v ./...
+
 run-race:
 	go test -count=1 -p 1 -v -race ./... 2>&1 | tee pmm-api-tests-output.txt
 	cat pmm-api-tests-output.txt | bin/go-junit-report > pmm-api-tests-junit-report.xml
diff --git a/api-tests/server/settings_test.go b/api-tests/server/settings_test.go
index cae52f07ac..be972eee17 100644
--- a/api-tests/server/settings_test.go
+++ b/api-tests/server/settings_test.go
@@ -521,7 +521,7 @@ func TestSettings(t *testing.T) {
 				assert.Empty(t, res)
 			})
 
-			t.Run("ChangeSSHKey", func(t *testing.T) {
+			t.Run("ChangeSSHKey only on AMI and OVF", func(t *testing.T) {
 				defer restoreSettingsDefaults(t)
 
 				sshKey := "ssh-rsa AAAAB3NzaC1yc2EAAAADAQABAAABAQClY/8sz3w03vA2bY6mBFgUzrvb2FIoHw8ZjUXGGClJzJg5HC" +
@@ -535,8 +535,8 @@ func TestSettings(t *testing.T) {
 					},
 					Context: pmmapitests.Context,
 				})
-				require.NoError(t, err)
-				assert.Equal(t, sshKey, res.Payload.Settings.SSHKey)
+				pmmapitests.AssertAPIErrorf(t, err, 500, codes.Internal, `SSH key can be set only on AMI and OVF distributions`)
+				assert.Empty(t, res)
 			})
 
 			t.Run("OK", func(t *testing.T) {
diff --git a/managed/services/server/server.go b/managed/services/server/server.go
index 2a2a358308..9573164b66 100644
--- a/managed/services/server/server.go
+++ b/managed/services/server/server.go
@@ -600,7 +600,8 @@ func (s *Server) ChangeSettings(ctx context.Context, req *serverv1.ChangeSetting
 		// absent value means "do not change"
 		if req.SshKey != nil {
 			if err = s.writeSSHKey(pointer.GetString(req.SshKey)); err != nil {
-				return errors.WithStack(err)
+				s.l.Error(errors.WithStack(err))
+				return status.Errorf(codes.Internal, err.Error())
 			}
 		}