Property 'picklist' not valid

Similar to the issue posted here while deployment, I faced another identical issue due to deprecated API tags. This time we get following error:

Property 'picklist' not valid in version 45.0

This was happening because tag was deprecated in API 39.0. Solution is to replace old tags with new format.

Old Format:

<fields>
	<fullName>Status</fullName>
	<externalId>false</externalId>
	<label>Status</label>
	<picklist>
		<picklistValues>
			<fullName>In Progress</fullName>
			<default>false</default>
		</picklistValues>
		<picklistValues>
			<fullName>Completed</fullName>
			<default>false</default>
		</picklistValues>
		<restrictedPicklist>true</restrictedPicklist>
		<sorted>false</sorted>
	</picklist>
	<required>false</required>
	<trackTrending>false</trackTrending>
	<type>Picklist</type>
</fields>

New Format:

<fields>
	<fullName>Status</fullName>
	<externalId>false</externalId>
	<label>Status</label>
	<type>Picklist</type>
	<valueSet>
		<restricted>true</restricted>
		<valueSetDefinition>
			<sorted>false</sorted>
				<value>
					<fullName>In Progress</fullName>
					<default>false</default>
					<label>In Progress</label>
				</value>
				<value>
					<fullName>Completed</fullName>
					<default>false</default>
					<label>In Progress</label>
				</value>
		</valueSetDefinition>
	</valueSet>
</fields>