We can confirm that the system is not taking into consideration of Windows Authentication for SQL Server. When we create a DB User with required priveleges, we are able to proceed with upgrade.
Just to confirm that the issue is with windows authentication, we have tested with above temporary DB User.
However as per client we are still looking for a solution which will take Windows Credentials into consideration while running Upgrade/Update.
Based on our knowledge, migrate will not start the server and hence there was no issue with migrate step. However Upgrade/Update tries to start the server with connection properties given in setupdatabase and failing during startup as it is not able to recognize the authentication details given.
Have you guys found a solution for this? Is the solution, if any, present for the upgrade to 7.3.1? I am also facing a same issue. The client uses windows authentication for database, MSSQL. Please let me know how to resolve this. Thanks.