PuTTY >v0.59: Incoming packet was garbled on decryption

[^rooker]

[PROBLEM]
After upgrading devil linux from 1.2.10 to 1.2.13, I got the following errormessage when connecting with PuTTY (v0.59 and 0.60):

Incoming packet was garbled on decryption

The new SSH server version was: SSH-1.99-OpenSSH_4.5

PuTTY's event log said:

Initialised AES-256 SDCTR client->server encryption
Initialised HMAC-SHA1 client->server MAC algorithm
Initialised AES-256 SDCTR server->client encryption
Initialised HMAC-SHA1 server->client MAC algorithm
Incoming packet was garbled on decryption

I was able to connect properly using PuTTY v0.58, so I compared their event logs. The only difference was that since v0.59, PuTTY is using "AES-256 SDCTR" instead of only "AES-256".
This is in accordance with the Changelog for v0.59, where it says:

Various cryptographic improvements in SSH-2, including SDCTR cipher modes, a workaround for a weakness in CBC cipher modes, and Diffie-Hellman group exchange with SHA-256.

[SOLUTION]
According to this forum post on phwinfo.com, it's not a bug in PuTTY, but in OpenSSL.

The current workaround is to choose a different Cipher instead of AES (e.g. Blowfish).

In PuTTY's config that's:
"Connection > SSH > Encryption options"

Move "Blowfish" one up so that it's above "AES".