So as it turns out... (Enfocus investigations conclude)
The version of the library used in Switch 2017, update 1 can't communicate with SFTP servers who use DSA based public or private keys in the encryption mechanism.
... and thus a Solution could be any of the below :
Instead of running Switch on a Mac, Windows does not have the issue.
Regenerate the keys on the FTP server. Setting up the SFTP server to use public or private keys using a newer encryption method would solve the issue. If it is possible for the owner of the FTP server to let it communicate using newer more secure private/public keys (instead of the older DSA based keys). For example RSA based keys could be used.
Downgrade to Switch 2017 (as opposed to 2017.1)
New networking library in Switch 2017, update 1. It is technically possible to replace some files in your current Switch installation so it uses a new version of the networking library which doesn't have the issue. This will work, but please note that this configuration did not go to the full quality approval cycle that a normal Switch release goes through.
Ultimately, we amended our .FTP Server and all is well again.