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When you say that the connection to the DB is using MySQL Localhost, do you mean that you have input localhost as the server name within the connection information?
If so, then when you publish to tableau server, the Tableau server is going to try to connect to MySQL on itself. (Localhost is an alias for the computer you are running on, ie itself)
You will need to update the connection with the computers actual name (or IP Address) if you want Tableau server to connect to it.
Hope this helps
Thanks Glen , This helps.
Error message is horrible though.
What Tableau Server version are you using?