Recently I was trying to setup vCenter Update Manager for vSphere 6. I setup the ODBC connection for 32-bit using the ODBC Driver 11 for SQL server. Setting up this connection was successful, but when I tried to run updates in my vCenter environment I would get an error stating that it could not connect to the database. This was an odd error because I knew the ODBC connection was successful. I contacted support and all they told me to do was build up a new update server. I tried that and it did not work. So after some deep googling I found a website which stated that you had to setup the update manager service to have a log on as. (Sorry this was done a few weeks ago, and I do not know what website it was)
So when setting up update manager make sure you configure the server to log on as a certain account. I did not notice that in any of the documentation. Maybe I some how missed it.