Please check the posting where we discovered this issue in a different context, IRM process
the DB level settings. We are not sure why SQL server is looking for these settings perhaps they are required from SQL Server perspective..
CONCAT_NULL_YIELDS_NULL = ON
ANSI_WARNINGS = ON
They also changed the below setting for the ODBC connection
Use ANSI nulls = On
paddings and warnings = ON
Rerun EIM job after setting the above.