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Okay so to run DB Setup from the client pc, I point to the server Sage300ERP/Runtime folder and execute aw4setup.exe ?
When I ran this, it showed that you can point to either a data source or a server. Server is selected. I noticed that the "data source" (not selected) had the name of an ODBC in it which I do not think is used anymore but has been carried forward over the years and was setup on the new PC.
On a trial, I made no changes to DB Setup, but I did delete that ODBC entry from the new PC. Once I did that, the company now opens in Sage.
Good news is that it is working. However I do not fully understand why it was not working, and now is, since the DB Setup was not selecting the ODBC as the Data Source.