Error while saving a workflow via sharepoint designer: Server-side activities have been updated. You need to restart SharePoint Designer to use the updated version of activities.

While saving a workflow using SharePoint designer on a SharePoint site, I get the following error: 
Server-side activities have been updated. You need to restart SharePoint Designer to use the updated version of activities.
Steps to recreate error:
Login to the WFE server hosting IIS and workflow manager, open SharePoint Designer 2013 and login to a SharePoint site.
Access the list using SharePoint Designer 2013, in the workflow section, click new workflow. 
In the new workflow dialog, enter workflow details, click save (see screenshot below).
Error message is displayed as below:
After restarting SharePoint Designer, the saved workflow is not seen in the site/workflows or list/workflow section.
Workaround
When the above steps are repeated while accessing the site via SPD from any other box besides the WFE/Workflow manager host server, the error is not encountered and its possible to save/publish workflows.
Notes
Workflow Manager 1.0 is installed.
The site has been registered with Workflow manager using Register-SPWorkflowService
cmdlet.
Any clue on why is this happening?

Hi Vivek,
Please close your SharePoint Designer application, clear/delete the cached files and folders under the following directories from your server installed SharePoint Designer, then check results again.
<user profile>\appdata\roaming\microsoft\SharePoint Designer\ProxyAssemblyCache
<user profile>\appdata\local\microsoft\websitecache\<sitename>
http://www.andreasthumfart.com/2013/08/sharepoint-designer-2013-server-side-activities-have-been-updated/
Thanks
We are trying to better understand customer views on social support experience, so your participation in this
interview project would be greatly appreciated if you have time.
Thanks for helping make community forums a great place.

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