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This particular file I seriously doubt your friend can open with version 1 of AxCrypt, since it is a version 2 file. Perhaps you just meant an earlier revision of version 2? If you look in the Recent Files window, it will say “AES-128” or “AES-256” – NOT “AES-128 v1”. The way that I see this here, is the lack of the “More…” button that is displayed in the File Password dialog when attempting to open a version 1-file. In any case, it is irrelevant to why you can’t open it.
The dialog itself is displayed because your sign-in password to AxCrypt is not the same as the password used to encrypt the file, and the file is not key shared with you.
If the file originates from your friend, you must ask him/her to use the “key share” functionality to give you the possibility to open it. In this case you’ll be able to open it after sign in without any additional passwords.