The error message is quite extensive and will tell you what is wrong. The main reason is almost always that the connection, which is trying to become interactive, shows a dialog. The error message will tell you why. If the connection is just trying to tell you that the password used is about to expire there are two ways around this.
The first and best way is to use a non-expiring password for the database connection of ITP/MDK Repository Server. If you do this, this problem will never occur.
The other way is to use a SQL tool to check the connection to the database and reset the password.
After you have checked that the new password works, you must restart the ITP/MDK Repository Server service on the server (Windows Start menu > ITP MDK Repository Server > Stop server and Start server) to de-block the connection. After this the ITP/MDK Repository should connect without a problem.