Resolve "protocol version mismatch" error when launching new terminal on SSH based environment

I have created a new SSH based Environment with a inf2.xlarge based instance and am having problems when creating a new terminal window as it is giving me the following repeated error message:

protocol version mismatch (client 8, server 7)

Do I need to update my SSH server on the instance ? The current version of SSH on the EC2 instance is the following:

OpenSSH_7.4p1, OpenSSL 1.0.2k-fips  26 Jan 2017