I solved it by creating a new user in AD (ex: VCAdmin)
then i gave that AD user following rights
- local administrator on the vcenter server
- on the database server i added the user under security and gave "server roles" : 'public' and 'sysadmin'. also under "User mapping" i gave 'db owner' rights on the vcenter database
I logged in with that AD user on the vcenter server and run the setup as administrator.
My ODBC had sql user authentication and didn't change this.
Setup run without error.
i was first upgrading with the administrator account from AD. didn't seem to work well