To be able to support TLS 1.2 you need to update the MS SQL Client to Native 11 driver but I don't think XI R2 is aware of the new driver so it likely won't work.
Time to upgrade to your reports to CR 2016 or above.
You can get CR from here:
https://www.sap.com/products/crystal-reports.html
And search for this KBA -
2269180 - Disabling TLS 1.0 may cause Crystal Reports Designer and .NET application to fail to connect to your MS SQL Server Database 2012/2014
And you will need to update your app in VS 2010->2017 and use the update CR runtime:
https://wiki.scn.sap.com/wiki/display/BOBJ/Crystal+Reports%2C+Developer+for+Visual+Studio+Downloads
Don
Thank You Don.
Installing latest Crystal Report Runtime solved my issue.
Only runtime is needed on the app server, they are basically the same.
You only need CRD installed if you want to edit the reports.
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