krdc is unable to connect to VNC servers after updating libvncserver from 0.9.7 to 0.9.8 or 0.9.8.1

When I inspect the traffic using wireshark, it looks like it is unable to authenticate.

This doesn't work:
kdenetwork-krdc 4.7.90-1
libvncserver 0.9.8-4

I also tried 0.9.8.1-1 and it also doesn't work.

This does:
kdenetwork-krdc 4.7.90-1
libvncserver 0.9.7-3

When it works (with 0.9.7) the wireshark shows following data:
(S = Server, C = Client):
S->C: Server protocol version: 003.889
C->S: Client protocol version: 003.008
S->C: Number of security types: 3
Security type: Unknown (30)
Security type: VNC (2)
Security type: Unknown (35)
C->S: Security type selected: VNC (2)
S->C: Authentication challenge: 3a9c(...)
C->S: Authentication response: 8aa5(...)
S->C: .... .... .... .... .... .... .... ...0 = Authentication result: OK

And the rest of the VNC session continues.

With 0.9.8.1 it shows:

S->C: Server protocol version: 003.889
C->S: Client protocol version: 003.008
S->C: Number of security types: 3
Security type: Unknown (30)
Security type: VNC (2)
Security type: Unknown (35)
C->S: Security type selected: Unknown (30)
S->C: Security type selected: Invalid (0)

And the client closes the connection.