Same problem here and no answers listed here worked, nor any solutions I could find online. The issue started shortly after Windows 10 anniversary update got applied on my dev PC and only affected my old SQL Server 2005 instance. I was not able to connect to the instance via my Web Applications or even using Sql Management Studio.
For what it's worth, this is what resolved it for me:
1. **Open SQL Server Configuration Manager** (depending on what version of SQL Server you're running):
- C:\Windows\SysWOW64\SQLServerManager.msc
- C:\Windows\SysWOW64\SQLServerManager10.msc OR
- C:\Windows\SysWOW64\SQLServerManager12.msc OR
- etc
2. **Select SQL Server Services**
3. **Locate the troubled service and view Properties**
- eg SQL Server (SQL2005) in my case
4. **In the Log On tab, change the "Built-in account" to "Network Service"**
Which is almost what this random solution said:
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I chose Network Service for no reason at all. Mine was already configured to use Local System. This security doesn't matter to me as it was only problematic on my Local development machine, only accessed locally. I can't advise why this works, but it did.