The error you're describing sounds very odd. How are you connecting to the database? Have you got the appropriate driver (ie latest version)?
When you first connect to the SQL database from the workbook, are you using the functional account? Or are you connecting as yourself and embedding the functional account user/password later?
This is what caused the error for me! I was connecting to the SQL as myself, creating and publishing the extracts, and then trying to update/embed the username and password of our generic user later on the server. I found the hard way that you have to initiate the SQL connection using whatever credentials you'll be using for the extract.
Best of luck!
Thanks for the response.
Have you faced the same issue that I am facing like in your case also account was getting locked/disabled out by itself on server?
On the SQL server accounts, they were not getting locked out. However, we also have some custom SQL connecting to a SharePoint list and that account did get locked after multiple failed attempts to refresh the extract.