How can I use SSH with a SOCKS 5 proxy?

You are using 'connect' for HTTPS as your proxy version, this is from man nc:

-X proxy_version Requests that nc should use the specified protocol when talking to the proxy server. Supported protocols are ''4'' (SOCKS v.4), ''5'' (SOCKS v.5) and 'connect' (HTTPS proxy). If the protocol is not specified, SOCKS version 5 is used.

So you should use the following to use SOCKS 5:

ProxyCommand /usr/bin/nc -X 5 -x 127.0.0.1:7777 %h %p

Or simply:

ProxyCommand /usr/bin/nc -x 127.0.0.1:7777 %h %p

I hope it helps.

ssh -o ProxyCommand='nc --proxy-type socks4 --proxy 127.0.0.1:9050 %h %p' user@host

fc19 x86_64, Ncat: Version 6.25

tsocks (http://tsocks.sourceforge.net/) is a nice wrapper that uses LD_PRELOAD to make any program use SOCKS proxy transparently:

tsocks ssh example.com

Just works, remember to configure SOCKS proxy IP in /etc/tsocks.conf