I've been noticing this with a couple people as well. What's the database path that the program is looking for? Is it on the C:\ drive?

Also, SQL 2005 may be interfering with AC. The computer could be seeing SQL 2005 when it should be looking for SQL 2012. I would check the path that AC is looking in first, then I would see if SQL 2005 is still active on the server.