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R81.10 VPN site-2-site to Cisco C8500-12X IOS XE (not Palo Alto as previously stated)

EDIT:
Sorry guys. I was misinformed
- it now proves that the remote peer is in fact cisco C8500-12X, not Palo Alto firewalls... They are not making it easy on me 🙂


History:
I am managing a CP R81.10 secure GW (VSX) with several VPNs to different vendors.
In late April we created yet another site-2-site VPN tunnel - towards Cisco IOS XE (for the first time), and it worked flawlessly.
In early July we deployed most recent (at that time) Jumbo Hotfix take 152.

Issue:
Since the JHF deployed in July it appears we have had problems when IPsec SA keys are renegotiated (at default time interval of 3660 seconds).
Note that the tunnel works for the vast majority of the time, and the tunneled subnets does reestablish communication eventually without manual intervention, but we do see traffic impact.

VPN Blade logs Rejects of various types - but generally in sequence:

From remote Cisco IOS XE to CP:
Child SA exchange: Ended with error
Initial exchange: Sending notification to peer: Invalid Key Exchange payload

Then from CP to remote Cisco IOS XE:
Child SA exchange: Received notification from peer: No proposal chosen MyMethods Phase2: AES-GCM-256 + HMAC-SHA2-384, No IPComp, No ESN, Group 20 (384

...
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