Kirti,
Seems like the value of the password in the config that is stored in the database was not encrypted using the current key. I have seen this error when I change the encryption key but don’t re-save the password/config. Or if you copy a database from one environment to another and the encryption keys are different in the two environments.
If you haven’t done this already, open the config, re-enter the password and save it.
Hope that helps,
Mike
This issue is fixed with the help of Mendix Support Team.
Issue was in encryption prefix. I was using {AES} where as it should be {AES2} for the encryption module version i was using.
Regards,
Kirti