interesting. Have you opened a support case yet?
I tried doing it, but admittedly I created a simple test directly on 10.0.2 desktop and then published it to server. Does this work for you? I wonder if somehow there's something wrong when upgrading an existing workbook.
Also, do you use impersonation or Kerberos delegation?
No I haven't opened a support case yet. I have no issues publishing the workbook, but the data extract will not do an incremental refresh. Based on the error, I'm assuming that the full refresh will also not work. I did end up doing a full refresh in Desktop and re-publishing to see if this helps.