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SQL Developer for VS Code 26.2 / SQLcl 26.2: ORA-17002 (Connection Reset)

Bhakti PrabhuJul 30 2026 — edited Jul 31 2026

UPDATE / RESOLUTION: This is not an Oracle 19c compatibility issue. It is a regression/change in SQLcl 26.2 and SQL Developer for VS Code 26.2 where connections fail with ORA-17002 if the server uses the default SQLNET.ENCRYPTION_SERVER=ACCEPTED. Workaround: Set SQLNET.ENCRYPTION_SERVER=REQUESTED in the server's sqlnet.ora. See the thread below for full details.

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Hi,

I seem to have found a compatibility issue between SQL Developer for VS Code 26.2 and an Oracle Database 19c SE2 (19.28) environment.

Environment

  • OS: Windows
  • SQL Developer for VS Code: 26.2
  • SQLcl: 25.1
  • Database:
    • Oracle Database 19c Standard Edition 2
    • Release 19.0.0.0.0
    • Version 19.28.0.0.0

Issue

All connection attempts from SQL Developer for VS Code 26.2 fail with:
DBTS-02010: A connection with the database could not be established

The log shows:
ORA-17002: I/O error: Connection reset, Authentication lapse 69 ms

What I have verified

  • Database is available and accepting connections.
  • Listener is available.
  • Username/password are correct.
  • Account status is OPEN.
  • Authentication type is PASSWORD.
  • Same machine, same network, same credentials.

Test Results

Compatibility Matrix

SQL Developer for VS Code 26.1.2 + Oracle 19.28 -> SUCCESS 
SQL Developer for VS Code 26.2 + Oracle 19.28 -> FAILURE 

SQL Developer for VS Code 26.2 + Oracle 23ai -> SUCCESS 

SQLcl 25.1 + Oracle 19.28 -> SUCCESS

The issue appears specific to the combination of:

SQL Developer for VS Code 26.2 
+ 
Oracle Database 19c (19.28)

Question

Has anyone else experienced connection failures to Oracle 19c after upgrading to SQL Developer for VS Code 26.2?

I've attached the full VS Code log containing the stack trace and DBTS-02010 / ORA-17002 errors.

Thanks.

SQL Developer - Log.log

This post has been answered by Bhakti Prabhu on Jul 31 2026
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Added on Jul 30 2026
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