Why are ssh_args ignored? Why control socket does not exist? Why bind() Operation not permitted?

gistfile1.txt

$ cat ansible.cfg 
[defaults]
timeout = 20
remote_tmp = /tmp/ansible/$USER
hostfile = inventory
ssh_args = foo

$ ansible -vvvv test -o --sudo -m ping
<example.com> ESTABLISH CONNECTION FOR USER: user
<example.com> REMOTE_MODULE ping
<example.com> EXEC ssh -C -tt -vvv -o ControlMaster=auto -o ControlPersist=60s -o ControlPath="/home/user/.ansible/cp/ansible-ssh-%h-%p-%r" -o KbdInteractiveAuthentication=no -o PreferredAuthentications=gssapi-with-mic,gssapi-keyex,hostbased,publickey -o PasswordAuthentication=no -o ConnectTimeout=20 example.com /bin/sh -c 'mkdir -p /tmp/ansible/$USER/ansible-tmp-1418305396.87-258336820534371 && chmod a+rx /tmp/ansible/$USER/ansible-tmp-1418305396.87-258336820534371 && echo /tmp/ansible/$USER/ansible-tmp-1418305396.87-258336820534371'
example.com | FAILED => SSH encountered an unknown error. The output was:
OpenSSH_5.3p1, OpenSSL 1.0.1e-fips 11 Feb 2013
debug1: Reading configuration data /etc/ssh/ssh_config
debug1: Applying options for *
debug1: auto-mux: Trying existing master
debug1: Control socket "/home/user/.ansible/cp/ansible-ssh-example.com-22-user" does not exist
debug2: ssh_connect: needpriv 0

...
debug3: muxserver_listen: temporary control path /home/user/.ansible/cp/ansible-ssh-example.com-22-user.3x1MeRKmxUGxmvWe
muxserver_listen bind(): Operation not permitted