2003568 - After UMT migration some crystal report instances fail with an error

After migrating Crystal Reports with instances from BOE XI3.1 SP5 to a BI4 SP06 environment, some Crystal Reports instances seem fail with an error.

• Crystal Reports instances fail with " The viewer could not process an event. Error in File REPORTNAME:  Encapsulating page failed. [] ---- Error code:0 [CRWEB00000119] " error
• While report can be opened and refreshed, instances when opening produce the error.
• The issue is seen with reports migrated using " live to live " as well as " biar to live " migration options.
• We notice that for some of the reports, their instances seem to “refresh on open“ upon viewing thereby causing the error because the server does not have the same database connection.
• The instances are not configured for and hence hence not supposed to refresh on open. 
• As some of crystal reports use sub-reports, we applied kbase 1823637 which suggests to uncheck sub-reports option "re-import on open".  But that does not resolve the. 

SAP BusinessObjects BI Platform 4.0 SP06
SAP BusinessObjects Enterprise XI 3.1 SP5
All supported operating systems

BI BOE 4.0 3.1 SP06 SP6 SP7 crystalreport cr regression , KBA , BI-BIP-UMT , Upgrade management tool , BI-BIP-INS , Installation, Updates, Upgrade, Patching , Problem