When trying to connect to a SQL Server database, the following error is displayed and Toad also may crash.
"SQL Server Database Error
A connection was successfully established with the server, but then an error occurred during the login process. (provider: SSL Provider, error:0 - The message received was unexpected or badly formatted.)"
Appears to be caused by known Microsoft .NET 4.5.1 issue: - 2915689
Example 4 in the article is what is displayed in the exception log when the above error occurs with a crash.
This Microsoft .NET issue has been addressed in .NET 4.5.2 which can be downloaded here.