Mender-Client 4.0.1 is failing to update deployment status

I tried to create a deployment on a device with mender-client4 installed in it.
The deployment started successfully and the state scripts ran too. But the client was not able to report the status to the server, and was giving the following error logs.

Mar 12 17:37:50 ZenGateway-438 mender-update[23995]: record_id=2575 severity=info time="2024-Mar-12 17:37:50.962356" name="Global" msg="Sending status update to server"
Mar 12 17:37:50 ZenGateway-438 mender-update[23995]: record_id=2576 severity=error time="2024-Mar-12 17:37:50.964851" name="Global" msg="Request to push status data failed: PUT http://127.0.0.1:32917/api/devices/v1/deployments/device/deployments/9ab4ef8c-4a36-4475-bf5a-1583d987799f/status: "
Mar 12 17:37:50 ZenGateway-438 mender-update[23995]: record_id=2577 severity=error time="2024-Mar-12 17:37:50.965031" name="Global" msg="Could not send deployment status: bad version: PUT http://127.0.0.1:32917/api/devices/v1/deployments/device/deployments/9ab4ef8c-4a36-4475-bf5a-1583d987799f/status: "
Mar 12 17:37:50 ZenGateway-438 mender-update[23995]: record_id=2578 severity=info time="2024-Mar-12 17:37:50.965132" name="Global" msg="Retrying status update after 300 seconds"

Now after I downgraded the mender-client to version 3.5.2, the device didn’t have any problem reporting the deployment status to the server.

I checked the logs on both mender-client4 and on the mender server (version 3.7) too. Couldn’t find anything helpful or relevant to understand where the issue is.

Any help around this would be appreciated.
Thanks!