Error while creating sftp only user on ubuntu server

Question

I want to create a new user and restrict the user for only sftp access where also the user is restricted within a directory and cannot access root directory.

I did the following steps:

1) created a new group called sftp-users.

2) created a new user called myUser and set its password.

3) added myUser to sftp-users group.

4) /var/www/example.com is the project directly within which I want to restrict this users SFTP access. I used usermod command to set this directory as home directory of myUser.

5) Used: usermod -s /sbin/nologin myUser to restrict shell access

6) On /etc/ssh/sshd_config file I commented the following line

#Subsystem sftp /usr/lib/openssh/sftp-server

and added the following line instead of it

Subsystem sftp internal-sftp

Finally at the bottom of the file I added following rules

Match Group sftp-users
        ChrootDirectory %h
        ForceCommand internal-sftp

Now when I try to login using:

ssh myUser@localhost

After entering the password and it gives me the following error

packet_write_wait: Connection to 127.0.0.1 port 22: Broken pipe
Couldn't read packet: Connection reset by peer

Ownership details of the /var directory:

drwxr-xr-x 14 root root   4096 Jan 15  2018 ./
drwxrwxr-x 23 root root   4096 Jul  4 06:08 ../
drwxr-xr-x  2 root root   4096 Jul 20 06:25 backups/
drwxr-xr-x 12 root root   4096 Jun 23 17:00 cache/
drwxrwxrwt  2 root root   4096 Jan 12  2018 crash/
drwxr-xr-x 53 root root   4096 Jun 23 17:00 lib/
drwxrwsr-x  2 root staff  4096 Apr 12  2016 local/
lrwxrwxrwx  1 root root      9 Jan 12  2018 lock -> /run/lock/
drwxr-xr-x 11 root syslog 4096 Jul 20 06:25 log/
drwxrwsr-x  2 root mail   4096 Jan 12  2018 mail/
drwxr-xr-x  3 root root   4096 Jun 23 16:14 opt/
lrwxrwxrwx  1 root root      4 Jan 12  2018 run -> /run/
drwxr-xr-x  2 root root   4096 Nov 30  2017 snap/
drwxr-xr-x  5 root root   4096 Jan 15  2018 spool/
drwxrwxrwt  4 root root   4096 Jul 20 01:45 tmp/
drwxr-xr-x  4 root root   4096 Jul  9 08:05 www/

Ownership details of the /var/www directory:

drwxr-xr-x  4 root        root      4096 Jul  9 08:05 ./
drwxr-xr-x 14 root        root      4096 Jan 15  2018 ../
drwxr-sr-x  6 myUser      user2     4096 Jul 18 15:36 example.com/