Issue with running custom reports from custom responsibilities that use custom application and custo

We have a custom schema (Oracle ID)  assigned to a custom application under the standard data group, and we have a custom responsibility using that standard group and custom application/custom Oracle ID. The custom schema (Oracle ID) has all the synonyms for all APPS objects - Tables, Views, Procedures, Functions, Packages and sequences.

We are unable to run concurrent programs/reports from the custom responsibility after we upgraded to R12. The concurrent programs are failing with the below error:

Enter Password: Enter Password: Enter Password: REP-0167: Database connect strings are not permitted in USERID parameter. Use TNSnames alias to specify the database. REP-0501: Unable to connect to the specified database. ORA-01017: invalid username/password; logon denied REP-0501: Unable to connect to the specified database. ORA-01017: invalid username/password; logon denied REP-0309: Unable to connect to the specified database after three attempts. Access denied.