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An updated Visual Studio 2008 C Runtime (version 9.0.30729.7523) ships with ArcGIS 10.2 and includes a security fix described in Microsoft KB2607389, which changes the behavior of the Microsoft Foundation CDatabase class when working with database passwords and causes ODBC connections to appear broken for third-party software.
The Microsoft security fix encrypts database passwords stored in memory and causes the CDatabase::GetConnect() method to return an empty string. If ArcGIS 10.2 is installed on machines running third-party software applications which use CDatabase::GetConnect(), access to ODBC connections may appear broken.
Microsoft has acknowledged the problem and identified the affected component as the MFC CDatabase class. Further details are provided in KB2915724.
Please contact Microsoft with respect to KB2915724.