SQL authentication Problem - NT AUTHORITY\ANONYMOUS LOGON

There are many threads on the topic of NT AUTHORITY\ANONYMOUS LOGON.

I am starting a new one as I am having trouble with it but from different angle.

I am using Azure SQL DB and using SQL authentication for direct query.

My Power BI desktop works fine. After publishing report shows this problem.

I have also updated published dataset with credential using Basic method with SQL authentication credentials.

I am not sure what have I missed here. Please help.

Here are the details.

Couldn't load the schema for the database model
Couldn't load the model schema associated with this report. Make sure you have a connection to the server, and try again.
Please check the technical details for more information. If you contact support, please provide these details.
Underlying Error: A connection could not be made to the data source with the Name of '07fcf078-7916-4e68-8852-95a5577a3137'.  Login failed for user 'NT AUTHORITY\ANONYMOUS LOGON'.. The exception was raised by the IDbConnection interface.
Activity ID: 0df9a08b-9ea2-4f87-86b6-0a9e35709d04
Correlation ID: 3041412f-1eae-eb47-322b-e218a262a5e8
Request ID: 6a152610-a197-807e-07fe-9469afcf8185
Time: Wed Oct 24 2018 10:30:11 GMT-0700 (Pacific Daylight Time)
Version: 13.0.7220.114
Cluster URI: https://df-msit-scus-redirect.analysis.windows.net

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Additional useful info.

 I first published this report with a different Azure SQL server (DEV) and it worked. Now I switched to Prod version of Azure SQL server. For this I changed the source by editing it on pbix file. It worked there and then I published it and updated dataset cred in the service. And I have the above problem.