Sybase / Adaptive Server requires encryption of the login password on the network

Adaptive Server requires encryption of the login password on the network

The below errors are seen when connecting to a Sybase database when "AuthenticationMethod=1" is specified in the DSN.

This is seen when "sp_configure 'net password encryption reqd',2" is run on the Sybase Server. 

With "sp_configure 'net password encryption reqd',1" set, no errors are received.

https://knowledgebase.progress.com/articles/Article/000053483