Hi Ben
So the advanced project setup is complaining that the config SG Desktop is running is using an older version of core than the project config you are wanting to setup.
If you check the about box on SG Desktop, it should tell you what version of core it is using:
Since we just pushed out a new version of both the tk-config-basic (which desktop uses and automatically updates on) and tk-config-default2, I suspect that you probably just need to re start SG Desktop to get the latest update and it will start using v0.18.172.