This would be hard to tell without knowing how this situation came to be. Can you file a ticket with your 3.2.1 database, 4.2.1 project mpk and all the .sql files in your deployment/data/database/ folder?
I am guessing the name of the sequence to correct the query manually.
-Do you know when a table needs a sequence? (Is that only tables for entities (not inherited ones) need sequences?)
-When it is needed to drop a sequence?
-About the order of queries "DROP SEQUENCE ... CASCADE", is that Mendix generate the queries in alphabetical order?