3512632 - Cannot add new Repserver with rs_init when password encryption is enabled in RSSD ASE -SRS

When installing New Rep server via rs_init 

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CONFIGURE REPLICATION SYSTEM

1.  Install a new Replication Server <----
2.  Add a database to the replication system
3.  Upgrade an existing Replication Server
4.  Downgrade RSSD for an existing Replication Server
5.  Upgrade an existing database in the replication system
6.  Enable password encryption for a Replication Server
7.  Alter a Replication Server configuration file password
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The utility fails in stage when it starts Repserver :

I. ****  Server using Component Interface Library version SAP CI-Library/16.0/EBF 30941 SP04 PL06 rs160sp04pl06/CI 1.18.0/Linux AMD64/Linux 4.12.14-95.117-default x86_64/3030/OPT64/Sun Mar 24 19:27:43 2024
E. ***. ERROR #1028 GLOBAL RS(GLOBAL RS) - /generic/useful/cm.c(5369)
        Message from server: Message: 1640, State 2, Severity 16 -- 'Adaptive Server requires encryption of the login password on the network.
'.
E. 2024/08/26 06:07:52. ERROR #1028 GLOBAL RS(GLOBAL RS) - /generic/useful/cm.c(5369)
        Message from server: Message: 4002, State 1, Severity 14 -- 'Login failed.
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Connection to same ASE RSSD server succeeds using same user and password via

isql -U RSSD_user -S RSSD_Server .... -X

• SRS 16.0
• ASE 16.0 

CR829780, 829780, CR#829780 , KBA , BC-SYB-REP , Sybase Replication Server (standalone) , Problem