Redshift error: authentication method 13 not supported when creating a user with sha256 hashed password

The redshift docs say when creating a new user, you can specify your password as cleartext, md5 hash, or sha256 hash with a salt. Two valid formats they give for sha256 are sha256|<cleartext password>, and sha256|<digest>|<salt>. I tried both formats when making a user and came up with the same error: error: authentication method 13 not supported.

I tried psql that came with postgres version 14, and psql that came with version 13, both reported the same error. I also tried connecting with Navicat, and it reported the same error.

Do we need to run SET password_encryption TO sha256 or something similar?