WORKAROUND:
1. Go to C:\Program Files\Dell or Quest Software\Diagnostic Server\Agent\Bin folder
2. Open SpotlightDiagnosticServer.ini file with Notepad and add the previously entered proxy setting for PagerDuty
3. Save and close file
4. Restart Diagnostic Server services
STATUS:
Waiting for fix in the future release of Spotlight on SQL Server Enterprise.
Note: The fix is not to overwrite the contents of SpotlightDiagnosticServer.ini during upgrade from 11.7 version