An application intermittently fails with generic ODBC error. The client application is using ODBC to connect to SQL cluster. Enabling ODBC tracing shows this error:

StorageOnlineOp 46ec-44a8       ENTER SQLDriverConnectW                                HDBC                0x012E2FD8                               HWND                0x00000000                               WCHAR *             0x6C228B34 [      -3] "******\ 0"                               SWORD                       -3                                WCHAR *             0x6C228B34                                SWORD                       -3                                SWORD *             0x00000000                               UWORD                        0 <SQL_DRIVER_NOPROMPT>  StorageOnlineOp 46ec-44a8       EXIT  SQLDriverConnectW  with return code -1 (SQL_ERROR)                               HDBC                0x012E2FD8                               HWND                0x00000000                               WCHAR *             0x6C228B34 [      -3] "******\ 0"                               SWORD                       -3                                WCHAR *             0x6C228B34                                SWORD                       -3                                SWORD *             0x00000000                               UWORD                        0 <SQL_DRIVER_NOPROMPT>                                DIAG [IM005] [Microsoft][ODBC Driver Manager] Driver's SQLAllocHandle on SQL_HANDLE_DBC failed (0)  

According to Microsoft the error is explained:

(DM) During SQLConnect, the Driver Manager called the driver’s SQLAllocHandle function with a HandleType of SQL_HANDLE_DBC and the driver returned an error.

Any recommended steps for further narrowing down the problem?

According to ODBC logs version information is:

03.80.0000 = SQLGetInfoW (SQL_ODBC_VER) 03.52 = SQLGetInfoW (SQL_DRIVER_ODBC_VER)