2233445 - "data type conversion is not possible" or "Right truncation of string data" - SAP IQ

A query which uses a date to varchar conversion statement worked in IQ 15.x or SAP IQ 16 SP04 and earlier but now throws an error "data type conversion is not possible" or returns NULL values instead of specified part of a date or time.

SQL Anywhere Error -1001006: Data exception - data type conversion is not possible. 
-- (dflib/dfe_Cast.cxx 940) 

OR

Right truncation of string data 
SQLCODE=-638, ODBC 3, State="22001"

IQ16 sp03 and later. SQL using date or time related variables.

 conversion, dfe_Cast.cxx, silent, truncation, "Right truncation of string data ", "data type conversion is not possible", "SQLCODE=-638", DML_options115, NULL, date, datetime.  , KBA , BC-SYB-IQ , Sybase IQ , Problem