Though GCP's "recommended way" of adding SSH keys is quite convoluted, found that I could use my usual method to add my key, and use PasswordAuthentication yes in /etc/sshd-config to allow password-based logins for users.
As can be seen in this techrepublic post, the way to prevent newly created users from seeing each others' directories is to edit the /etc/adduser.conf file, changing the default home directory permissions from 755 to 750. We can of course do this manually with sudo chmod 750 /home/user1 and so on.
Then, using a "Free Tier" f1 micro instance, someone can do text-based teaching like conducting a C lab after installing the required build tools like apt install gcc or apt-get install build-essential. Currently the specs of a free tier compute instance are -
1 F1-micro instance per month
Scalable, high-performance virtual machines.
1 non-preemptible f1-micro VM instance per month in one of the following US regions:
Oregon: us-west1
Iowa: us-central1
South Carolina: us-east1
30 GB-months HDD
5 GB-month snapshot storage in the following regions:
Oregon: us-west1
Iowa: us-central1
South Carolina: us-east1
Taiwan: asia-east1
Belgium: europe-west1
1 GB network egress from North America to all region destinations (excluding China and Australia) per month.
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