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It is possible that your protocol order does not have windows security listed in the PI SDK Utility?
Take a look at PI SDK Utility>Connections>Options and see if windows security is listed. Can other applications connect to the PI Server?
Yes, as a matter of fact Windows Security is first followed by PI Trust and then Default User.
I can connect using PI SQL Commander Lite and Sql Server Management Studios. I cannot connect with Power BI or with Excel 2016. Both give the same error message.