SSH Slaves plugin fails the host verification of slaves with an IllegalArgumentException

ERROR: Unexpected error in launching a slave. This is probably a bug in Jenkins.
java.lang.IllegalArgumentException
  at com.trilead.ssh2.Connection.setServerHostKeyAlgorithms(Connection.java:1311)
  at hudson.plugins.sshslaves.SSHLauncher$2.call(SSHLauncher.java:796)
  at hudson.plugins.sshslaves.SSHLauncher$2.call(SSHLauncher.java:792)
  at java.util.concurrent.FutureTask.run(FutureTask.java:266)
  at java.util.concurrent.ThreadPoolExecutor.runWorker(ThreadPoolExecutor.java:1142)
  at java.util.concurrent.ThreadPoolExecutor$Worker.run(ThreadPoolExecutor.java:617)
  at java.lang.Thread.run(Thread.java:745)
[06/13/17 13:10:39] Launch failed - cleaning up connection
[06/13/17 13:10:39] [SSH] Connection closed.