I am trying to test a SQL connection from my local PC(Win 7) to a SQL Server 2016 machine (Win 2016 Standard X64). I have just created a dummy .udl file, provided the server name, SQL credentials but I am receiving the following error:

[DBNETLIB][ConnectionOpen (SecDoClientHandshake().]SSL Security error.

If I connect through SQL Management Studio is works.

If I try to use the ODBC tool to test data source, I am receiving the following error message in the test connection window

Microsoft SQL Server Native Client Version 11.00.2100

Running connectivity tests...

Attempting connection
[Microsoft][SQL Server Native Client 11.0]Encryption not supported on the client.
[Microsoft][SQL Server Native Client 11.0]SSL Provider: The client and server cannot communicate, because they do not possess a common algorithm.

[Microsoft][SQL Server Native Client 11.0]Client unable to establish connection
[Microsoft][SQL Server Native Client 11.0]A network-related or instance-specific error has occurred while establishing a connection to SQL Server. Server is not found or not accessible. Check if instance name is correct and if SQL Server is configured to allow remote connections. For more information see SQL Server Books Online.

TESTS FAILED!

Update: For .udl dummy test I managed to get it work by enabling TLS 1.0 on the SQL Server System (Registry path: HKLM SYSTEM\CurrentControlSet\Control\SecurityProviders\SCHANNEL\Protocols)