2228134 - Error 4002 "Login failed" when trying to connect to isql - SAP ASE for Business Suite and SAP BW

• ASE isql connection is returning this error:

Msg 4002, Level 14, State 1:
Server '<SID>':
Login failed.
CT-LIBRARY error:
        ct_connect(): protocol specific layer: external error: The attempt to connect to the server failed.

• Same error can be seen in the dev_w0 file:

B ***LOG BY2=> sql error 4002 performing CON [dbsh 1263]
B ***LOG BY0=> [ASE Error SQL4002][SAP][ASE ODBC Driver][Adaptive Server Enterprise]Login failed.
[dbsh 1263]
B ***LOG BY2=> sql error 4002 performing CON [dblink 644]
B ***LOG BY0=> [ASE Error SQL4002][SAP][ASE ODBC Driver][Adaptive Server Enterprise]Login failed.
[dblink 644]

• SAP Adaptive Server Enterprise (ASE) 15.7 and 16.0 for Business Suite
• SAP Business Warehouse (BW) - All versions

ASE, isql, sapsa, password, sapsso, "login failed", 4002, Sybase , KBA , BC-DB-SYB , Business Suite on Adaptive Server Enterprise , BW-SYS-DB-SYB , BW on Adaptive Server Enterprise , Problem