No file "C:\ProgramData\CA\Gen 8.6\cfg\CSE\connectiononly.log" is created and when enable Tracing from the ODBC Administrator (odbcad32.exe) no ODBC tracing log file is created either.
The user had a double quote as part of their SQL Server password which interfered with the cse_config.exe use of osql.exe to execute file "C:\Program Files (x86)\CA\Gen86\CSE\cse_msqls\connectonly.sql".
The command used by cse_conifg.exe has this syntax containing double quotes so the extra double quote in the password causes a problem:
"osql.exe" -U USERID -P PASSWORD -D DSN_NAME -e -b -n -i "C:\Program Files (x86)\CA\Gen86\CSE\cse_msqls\connectonly.sql" -o "C:\ProgramData\CA\Gen 8.6\logs\CSE\connectonly.log"
So the connectonly.sql file never actually gets run and hence no log file is created.
Release : 8.6
Component : CA Gen Client Server Encyclopedia
After the password was changed to have no double quote, the CSE Configuration Encyclopedia Database Connection was successful.