Exposed filters error: views/ajax: this.slice is not a function

Exposed filters for views do not work at all with Ajax and jQuery Update. The error I get is "An error occurred while attempting to process //views/ajax: this.slice is not a function".

Issue also confirmed here #1380370: Error 'ajax.form.ajaxSubmit' is not a function

Looks like http://drupal.org/project/jquery_update is the problem with non D7 default jquery version.