This error shows an incompatibility between license applied to the Atlassian Product and the license applied to our app

Generally there are two license types that the Atlassian Marketplace uses. 
A commercial/ academic license that you purchased and a developer license that you can download from and which comes with the commercial license.
The commercial license is meant to be used on your production system, while the developer license is meant to be used in test/ dev/ staging systems.

The "wrong type" error in the plugin manager happens when you try to use a development license of our app, but you use a commercial Atlassian license or vice versa. 

When using a commercial license of an Atlassian product, a commercial license of our plug-in must be used
Same is true when using a development license on the Atlassian Product, a development license needs to be used in the plugin as well

Your Atlassian product stores its license and type in its database
When copying the database and connecting it to another instance (i.e. cloning a production system), the license will be transferred too.
Thus, a development instance can become a commercial instance unintentionally resulting in a license error.

Read more about how get your Development License - Can I get a license for standby/ development/ testing?