Possible cause of MM- Bad Swap File error when connecting via ODBC

Error connecting to the database via ODBC
_sqlsrv2 process has permissions to write to the working directory.
Database server is started via a script other than PROSERVE or AdminServer
[MERANT][ODBC PROGRESS driver][PROGRESS] MM - Bad swap file (7710)

A file being generated by the _sqlsrv2 process cannot be opened or created because the WRKDIR environment variable is not set. During the Progress install, the WRKDIR selected by the user and is set and designated by the install program that modifies the "proserve" and the "PROADSV" script.

Set the environment variable WRKDIR. If the WRKDIR environment variable is not set, the _sqlsrv2 process does not know where to write all temp/storage information during the connection.