After an upgrade, the AirWatch Directory Sync service does not authenticate properly. This results in a failure to sync users and user groups in the AirWatch Console.
In the DirectorySyncServiceLog you will see the error:
WanderingWiFi.AirWatch.SystemCodeService.SystemCodeConfigurationProvider.GetSetting*** EXCEPTION ***
System.Data.SqlClient.SqlException: Login failed for user '<Node name of server>'.
This error can occur if the service account used to run the AirWatch Directory Sync server does not have the appropriate permissions, typically when a specific administrator account is used to run AirWatch services rather than a computer account. Check Windows Services on the AirWatch Console server and verify if the service is running with the appropriate account. This account can get set to "Local System" following after an upgrade.