The solution is to place ntlmauth.dll in windows/system32 (or sysWow64) folder. but instead of placing it in system32 folder, we can place it in our own local folder and loaded by our talend jobs while establishing a connection to MS SQL Server.
Design time configuration:
1. Copy ntlmauth.dll to bin folder inside talend installed location. bin folder wont be present, create your own.
2. While executing the job, go to Advanced settings and select "Use Specific JVM arguments" and add the following additional argument
3. Execute the talend job, it will use windows authentication
1. While creating the package, ensure "bin" folder is also bundled along with ntlmauth.dll
2. Edit the .bat or .sh file and add the following entry
3. Execute the batch file, the job should run without any SSO error.