Also got this error and tried to put my login pass for SMOS instead of X with -mpsw, but same result.
When I restart claymore (latest version 10.6 in SMOS) I'm getting "Unknown option 0"
Cards seem to dig at same speeds as they did with 10.4 version, but only it keeps informing me "Srv: no password found in request. Remote IP: 127.0.0.1"

How to setup this password?

Thnx in advance