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If you wish to test the encryption options before changing the connection in ACM, you can do this in SQL Server Management Studio. On the "Connect to Server" form, click the "Options" button and open the "Connection Properties" tab. There are two options: "Encrypt" and "Trust the Server Certificate". Selecting Selecting neither will not encrypt the option will result in an unencrypted connection (ACM Option 1), selecting both will encrypt the connection and allow a self-signed certificate (ACM Option 2), and selecting only "Encrypt" will require a verifiable server certificate (ACM Option 3).
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