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Make sure you have defined a proper DataSource in your WLS as well.
Arun, please tell us your jdev and wls version.
This error means that the jdbc connection you have used has no password set when auto synchronizing connections and not deploying to the embedded server
1. Right click on Application drop down select Application properties
2. Click on Deployment
3. Uncheck “Auto Generate and Synchronize weblogic-jdbc.xml Descriptors During Deployment”