Hi,

I also have some S3352 switches running the same version of firmware as you.

I receive the same message but am still able to log into the devices successfully.

As far as I can see there is nothing wrong with the configuration you have shown.

Please check the configuration of your user-interfaces  to make sure it is set to permit incoming telnet.

Also please confirm that the telnet service is enabled.

When I upgrtaded my switches I did not get the same problem you had - maybe something else has changed in the network or on your telnet client?

I found the problem - while uploading configuration I missed the following lines:

user-interface vty 0 4
authentication-mode aaa

As soon as I've added them I could connect via telnet.