Failed to connect to the specified DBMS instance. An unexpected fatal exception occurred within this application. Execution should be terminated

Error Message

When performing an operating system authenticated database connection to databases such as Microsoft SQL Server or Oracle using ArcGIS Pro, the following error is returned:

Error:   
Failed to connect to the specified DBMS instance. An unexpected fatal exception occurred within this application. Execution should be terminated.

Cause

The ArcGIS Pro project is corrupt. This happens due to the following:

• An unsupported version of the database is used to make a database connection. For a list of supported databases and versions, refer to ArcGIS Pro: Supported databases for more information.
• The data is shared or unzipped incorrectly.
• The project is created using an outdated version of ArcGIS Pro, and opened in a newer version.
• There is an update to Windows.

Solution or Workaround

Follow these steps to resolve the issue.

1. Recreate the ArcGIS Pro project using the latest version of ArcGIS Pro. The latest version of ArcGIS Pro is available for download from the Downloads page in My Esri (my.esri.com).
2. Perform the SQL Server database connection in this new project. Refer to ArcGIS Pro: Connect to Microsoft SQL Server from ArcGIS for steps to do this.