I figured out a temporary workaround. Edit your ~/.ssh/config, and add the line:
Ciphers aes128-cbc

I haven't done any real debugging, but there looks like there could be a
problem with ciphers bigger than 128-bits. My Cisco devices are
complaining about DH length when I use AES192 or AES256. AES128 works
fine.

It's not ideal, but it could help for the time-being.

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https://bugs.launchpad.net/bugs/708493

Title:
  Can't login anymore: Read from socket failed: Connection reset by peer

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