If you're not able to download PCL on the internet due to proxy, the PCL bundled with the Updater Tool is selected automatically.
If you can download the Product compatibility list as suggested could you please review the updater log?
The updater tool creates a log with the name ePOUpdater.DATE.log under:
C:\ProgramData\McAfee\ePolicy Orchestrator\ePOUpdaterLogs
do you see on the log what is the issue with permissions?
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The Update fails, if the ePO DB has db_owner, but missing the owner rights.. go through the image as attached... since I have seen recently one issue with this... and also, the user which you trying.. if it is failing.
Other way....
Better to create one SQL user.. with SYSADMin rights and run the update with this credentials, Once it is done, then you can delete this user....
Other than this, check one of MY article, with out come value confirms is problem with this....
KB94641: CU Update fails with Error: The login is from an untrusted domain and cannot be used with Windows authentication
Beyond this, if the issue persist, as alejandro said, get the epoupdater log, so we can check more insight on the failure.
There are a couple of other things to check.
1. The default database of the account you are using must be set to master and not the epo db.
2. Go to the epo database, properties, files, then see what account is set as dbo there. If it is different, try to set the right account there.
If it fails, then expand the database and go to security, users. If that account is listed there, remove it from there (it will not delete it out of the main sql security, logins). Do the same for the events database. Once those are gone, then go back to files and set that account as dbo on both databases.
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