ORA-28040 using 32-bit PL SQL Developer

Given:

• 64-bit Oracle database 12.2.0.1 installed locally
• 32-bit PL/SQL Developer
• 32-bit Oracle client 12.2.0.1 (as 32-bit PL/SQL developer can’t use 64-bit client / JDBC)

When:
Trying to connect from 32-bit PL/SQL Developer get an error ORA-28040: No matching authentication protocol
Connection from 64-bit PL/SQL Developer is OK

Solution:
Add
SQLNET.ALLOWED_LOGON_VERSION_SERVER=12
to server sqlnet.ora file (not client or TNS_ADMIN file)