The Microsoft JDBC Driver for SQL Server supports NTLM v2 only, which offers enhanced security compared to the older NTLM v1 protocol.
To configure the system to allow only NTLM v2 and block NTLM v1, perform the following steps:
Open Group Policy Editor.
Navigate to Computer Configuration > Windows Settings > Security Settings > Local Policies > Security Options.
Right click on Network Security: LAN Manager authentication level, select properties, and then select Send NTLMv2 response only. Refuse LM & NTLM from the drop-down menu.
IMPORTANT:Disabling NTLM v1 could affect other applications that rely on it for authentication.
For more information, see Using NTLM Authentication.