Database Connection Setup errpr

Hello,

I am using CIS Microsoft Windows Server 2016 Benchmark 1.0.0 Level 2 on EC2 with ms-sql express 2016. When coming to setup Teamcity 2017.2 I receive the following error:

Login failed for user 'teamcity-sql'. ClientConnectionId:287ee400-4811-41b6-847f-02b843642553 (after 10 attempt(s); total time spent waiting 542.841 ms; driver version 6.0.8112.100; java.version=1.8.0_151; jdk.tls.client.protocols=[]; jdk.certpath.disabledAlgorithms=[MD2, MD5, SHA1 jdkCA & usage TLSServer, RSA keySize < 1024, DSA keySize < 1024, EC keySize < 224]; jdk.tls.disabledAlgorithms=[SSLv3, RC4, MD5withRSA, DH keySize < 768, EC keySize < 224])
SQL exception: Login failed for user 'teamcity-sql'. ClientConnectionId:287ee400-4811-41b6-847f-02b843642553 (after 10 attempt(s); total time spent waiting 542.841 ms; driver version 6.0.8112.100; java.version=1.8.0_151; jdk.tls.client.protocols=[]; jdk.certpath.disabledAlgorithms=[MD2, MD5, SHA1 jdkCA & usage TLSServer, RSA keySize < 1024, DSA keySize < 1024, EC keySize < 224]; jdk.tls.disabledAlgorithms=[SSLv3, RC4, MD5withRSA, DH keySize < 768, EC keySize < 224])

I have setup the db as described here:  https://confluence.jetbrains.com/display/TCD10/Setting+up+TeamCity+with+MS+SQL+Server#SettingupTeamCitywithMSSQLServer-CreatededicateduserforTeamCitywithSQLserverauthentication

I tried working through a few manuals but nothing seems to work. I have the right credentials and did not change any default security features in windows.

I can successfully Telnet 1433 on localhost.

Any help will be greatly appreciated