Ci stopped working due to Error response from daemon: client version 1.41 is too old. Minimum supported API version is 1.44, please upgrade your client to a newer version

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We have had stable ci for a long while and recently noticed it stopped working with error - "Error response from daemon: client version 1.41 is too old. Minimum supported API version is 1.44, please upgrade your client to a newer version" when docker login is tried to be executed.

Steps to reproduce:

Try this yaml for a free gitlab version.

stages:
  - deploy

services:
  - docker:dind
    
test:
  stage: deploy
  variables:
    DOCKER_HOST: tcp://docker:2375
  image: registry.gitlab.com/gitlab-org/cloud-deploy/aws-base:latest
  script:
    - aws ecr get-login-password --region us-east-2 | docker login --username AWS --password-stdin $DOCKER_REGISTRY
  when: manual
  only:
    - /^master$/

Below is execution's log

Running with gitlab-runner 18.4.0~pre.195.g5de42c65 (5de42c65)
  on blue-6.saas-linux-small-amd64.runners-manager.gitlab.com/default nN8vMRS9Z, system ID: s_a899fcd611a3
Preparing the "docker+machine" executor
00:47
Using Docker executor with image registry.gitlab.com/gitlab-org/cloud-deploy/aws-base:latest ...
Starting service docker:dind...
Using effective pull policy of [always] for container docker:dind
Pulling docker image docker:dind ...
Using docker image sha256:58cdce60b4d9596765151d2508cad4e3441223cf71e32ba68015def44b654c2e for docker:dind with digest docker@sha256:96789d56621ae702a2f8aa316c87a1a1875dd3f02bf67cdcb56a524a09fa3af9 ...
Waiting for services to be up and running (timeout 30 seconds)...
Using effective pull policy of [always] for container registry.gitlab.com/gitlab-org/cloud-deploy/aws-base:latest
Authenticating with credentials from job payload (GitLab Registry)
Pulling docker image registry.gitlab.com/gitlab-org/cloud-deploy/aws-base:latest ...
Using docker image sha256:c92d24ce053e526269f814867ab9442ff17b30721f0691158a40abd7b67aead2 for registry.gitlab.com/gitlab-org/cloud-deploy/aws-base:latest with digest registry.gitlab.com/gitlab-org/cloud-deploy/aws-base@sha256:91773d7cc5afdac8aa8a5c305ba2263fc76de483ba4b00a035cf71436f8ad2a0 ...
Preparing environment
00:04
Using effective pull policy of [always] for container sha256:3a2a629ed9925b0b6b98915c4297da57a840ed0a827f0b5af0ca487fe43e5de0
Running on runner-nn8vmrs9z-project-10842541-concurrent-0 via runner-nn8vmrs9z-s-l-s-amd64-1763065808-6d6837ce...
Getting source from Git repository
00:05
Gitaly correlation ID: 22271478af344a71b7e788b2249f4719
Fetching changes...
Initialized empty Git repository in /builds/Selyak/snaily/.git/
Created fresh repository.
Checking out 1063dd89 as detached HEAD (ref is master)...
Skipping Git submodules setup
$ git remote set-url origin "${CI_REPOSITORY_URL}" || echo 'Not a git repository; skipping'
Executing "step_script" stage of the job script
00:01
Using effective pull policy of [always] for container registry.gitlab.com/gitlab-org/cloud-deploy/aws-base:latest
Using docker image sha256:c92d24ce053e526269f814867ab9442ff17b30721f0691158a40abd7b67aead2 for registry.gitlab.com/gitlab-org/cloud-deploy/aws-base:latest with digest registry.gitlab.com/gitlab-org/cloud-deploy/aws-base@sha256:91773d7cc5afdac8aa8a5c305ba2263fc76de483ba4b00a035cf71436f8ad2a0 ...
$ aws ecr get-login-password --region us-east-2 | docker login --username AWS --password-stdin $DOCKER_REGISTRY
Error response from daemon: client version 1.41 is too old. Minimum supported API version is 1.44, please upgrade your client to a newer version
Cleaning up project directory and file based variables
00:01
ERROR: Job failed: exit code 1