Direct Query Service Report does not work on Desktop

[madhas]

My question has something to do with both Power BI Desktop and Power BI Service. So I thought it would be better to post it here because ones who know Service most likely have a good understanding of Desktop too. 

There are two Power BI reports (A & B) both are distributed and running on Service. I was asked to edit the reports. I have to edit it on desktop since I am not the author, then the author will upload it on Service. 

Report A is created based on Import and Report B based on Direct Query methods.

I am given the necessary Data Gateway permissions, through which both reports communicate with the SQL server. When I run report A on Power BI desktop everything works fine including the updating.

With report B however I cannot even open the file, let alone the updating. I think there must be a communication problem. 

Someone has any idea why it is so? 

Thanks and Regards