This is happening because TrueNAS' root user runs a .zshrc file where PROMPT=
is set to something that TRAMP doesn't understand. While in an SSH session as
root on the TrueNAS machine, make sure that you're running zsh using echo $0,
then open the file /root/.zshrc, comment out
PROMPT​="%n@%m[%40<...<%~%<<]# " (fourth line from the top), save, and try
connecting with TRAMP again.