Database connections to SQL Server fail when Microsoft ODBC Driver 18 is installed

Description

When the Microsoft ODBC driver 18 has been installed on a client machine, the following connection errors is encountered when connecting to a SQL Server database from an ArcGIS client.

Connection error
Failed to connect to the specified DBMS instance. 
A database connection exception has occurred. 
Failure to access the DBMS server[].

Or,

Connection error
Unable to get database list.
A database connection exception has occurred. Unable to connect to database server to retrieve database list; please verify your server name, user name, and password info and try again.
Failure to access the DBMS server[].

Cause

Microsoft ODBC Driver 18 for SQL Server includes changes related to encrypted connections that can affect Database Connection behavior in ArcGIS.

These changes include:

• A change to the default value of the `Encrypt` connection option from ’No’ to ‘Yes’.
• The TrustServerCertificate is not tied to the client-side Encrypt setting.

Workaround

This bug has been addressed in the following patches and releases:

• ArcGIS Pro 2.6.10
• ArcGIS Pro 2.7.7
• ArcGIS Pro 2.8.7
• ArcGIS Pro 2.9.4
• ArcGIS Pro 3.0
• ArcGIS Server 10.8.1 Utility Network Patch 7
• ArcGIS Server 10.9.1 Utility Network and Data Management Patch 2