If I understand this correctly .....You have two sites connected or at least trying to connect to one while connected to the other..... One that is connected is doing a file transfer.. The other is attempting to login and because of the file transfer it fails to login with an error?
If that logic is correct I've just tried to reproduce it several times making sure I was doing it correctly, unfortunately I was not able to reproduce the problem.
On the other hand normally these type of errors are in general a matter of switching from AUTH SSL to AUTH TLS or reverse.
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