How to generate valid BTC address to withdraw coins to
Your bitcoin client is generating a P2WPKH (bech32 encoded) address, which is a newer address format which has some benefits compared to legacy formats. The address is valid, but for whatever reason, the exchange mentioned has not upgraded it's code to recognize and send to this address type yet.
The fix is easy: you just need to tell bitcoin-core to generate a legacy address. You can use the following command:
$ bitcoin-cli getnewaddress &quot;(address_label)&quot; &quot;legacy&quot;
You can substitute your own label in for the (address_label), this is just for local book-keeping purposes, it can also just be left blank if you'd like:
$ bitcoin-cli getnewaddress &quot;&quot; &quot;legacy&quot;