I created a UDCX file for data connection using SQL Server authentication in InfoPath form of SharePoint 2010. After that, I created a secure storeId which has credentials stored for SQL authentication. Removed the username and password from the UDC file and added it back to data connection library .

The udc file contents

  <?xml version="1.0" encoding="UTF-8"?>
  <?MicrosoftWindowsSharePointServices ContentTypeID="0x000000000000000000000000000"?>
  <udc:DataSource MajorVersion="2" MinorVersion="0" xmlns:udc="http://schemas.microsoft.com/office/infopath/2006/udc">
     <udc:Description>Format: UDC V2; Connection Type: Database; Purpose: ReadOnly; Generated by Microsoft InfoPath 2010 on 2016-08-20 at 19:30:42 by MyId.</udc:Description>
      <udc:Type MajorVersion="2" MinorVersion="0" Type="Database">
         <udc:SubType MajorVersion="0" MinorVersion="0" Type=""/>
    <udc:ConnectionInfo Purpose="ReadOnly" AltDataSource="">
        <udc:ConnectionString>Provider=SQLOLEDB.1;Persist Security Info=True;Initial Catalog=databasecatalogname;Data Source=fqdnservername;Use Procedure for Prepare=1;Auto Translate=True;Packet Size=4096;Workstation ID=machinename;Use Encryption for Data=False;Tag with column collation when possible=False</udc:ConnectionString>
        <udc:ServiceUrl UseFormsServiceProxy="false"/>
        <udc:Query>select "field1","field2" from "dbo"."tablename" as "tablename"</udc:Query>
        <udc:ServiceUrl UseFormsServiceProxy="false"/>
        <udc:FileName>Specify a filename or formula</udc:FileName>
        <udc:FolderName AllowOverwrite=""/>
    <udc:Authentication><udc:SSO AppId='securestoreid' CredentialType='Sql' /></udc:Authentication>

I am getting following error

Data adapter failed during OnLoad: Current configuration settings prohibit embedding username and password in the database connection string.



SharePoint Central Admin ->general application settings-> Configure InfoPath Forms Services. Check the box next to Allow embedded SQL authentication and click the OK button.

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