Resolution
The customer had Core Services installed in a VMWare session on one machine and the VigilEnt database installed in a VMWare session on another machine. The upgrade changed the account starting the Netiq Core Services service to the local system account which did not have permission to connect to the database on the other machine.
To resolve this issue, change the account starting the Netiq Core Services service to a domain admin account or another account that has access to the database.
1)Go to the machine where Core Services is installed.
2)Go to start\Settings\Control Panel\Administrative Tools\Computer Management\Services and applications\Services
3)Locate the NetIQ Core Services service and right click and select properties.
4)Select the logon Tab and specify and account for the service to login with.
5)Apply settings and stop and restart the service to make the account changes take effect.