Complete the following steps on the server where the Microsoft SQL Server instance is installed:
- Click Start, then Run
- Type regedit, then press Enter
- In the registry editor, navigate to HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\.NETFramework\
- If the registry key OnlyUserLatestCLR exists and is set to 1, change the value to equal 0
- Reboot the server
- Launch The Raiser's Edge and continue updating the database when prompted