2902447 - Error - No alive connection. Check state of the server after SAP Solution Manager 7.20 upgrade

Post LM-SERVICE update Diagnostics Agent doesn't connect to SAP Solution Manager with following error in the Logs:

javax.naming.NamingException: Exception during getInitialContext operation. Cannot establish connection to the remote server. [Root exception is com.sap.engine.services.rmi_p4.P4IOException: No alive connection. Check state of the server]
at com.sap.engine.services.jndi.InitialContextFactoryImpl.handleConnectionPropblem(InitialContextFactoryImpl.java:416)
at com.sap.engine.services.jndi.InitialContextFactoryImpl.getInitialContext(InitialContextFactoryImpl.java:345)
at javax.naming.spi.NamingManager.getInitialContext(NamingManager.java:684)
at javax.naming.InitialContext.getDefaultInitCtx(InitialContext.java:313)
at javax.naming.InitialContext.init(InitialContext.java:244)
at javax.naming.InitialContext.<init>(InitialContext.java:216)
at com.sap.smd.agent.connection.SMDConnectionTask.getNewSMDInitialContext(SMDConnectionTask.java:174)
at com.sap.smd.agent.connection.SMDConnectionTask.getTransientInitialContext(SMDConnectionTask.java:607)
at com.sap.smd.agent.connection.SMDConnectionTask.internalAttemptConnection(SMDConnectionTask.java:274)
at com.sap.smd.agent.connection.SMDConnectionTask.access$000(SMDConnectionTask.java:51)
at com.sap.smd.agent.connection.SMDConnectionTask$1.run(SMDConnectionTask.java:90)
at com.sap.smd.agent.connection.P4JNDIContextHelper.executeInSecurityContext(P4JNDIContextHelper.java:141)
at com.sap.smd.agent.connection.SMDConnectionTask.attemptConnection(SMDConnectionTask.java:85)
at com.sap.smd.agent.connection.SMDConnectionTask.run(SMDConnectionTask.java:888)
at java.lang.Thread.run(Thread.java:836)
Caused by: com.sap.engine.services.rmi_p4.P4IOException: No alive connection. Check state of the server
at com.sap.engine.services.rmi_p4.P4ObjectBrokerClientImpl.getException(P4ObjectBrokerClientImpl.java:828)
at com.sap.engine.services.rmi_p4.P4ObjectBrokerClientImpl.getException(P4ObjectBrokerClientImpl.java:813)
at com.sap.engine.services.rmi_p4.ClientConnection.sendRequest(ClientConnection.java:410)
at com.sap.engine.services.rmi_p4.P4ObjectBrokerClientImpl.resolveInitialReference(P4ObjectBrokerClientImpl.java:123)
at com.sap.engine.services.rmi_p4.RemoteBroker.resolveInitialReference(RemoteBroker.java:41)
at com.sap.engine.services.jndi.InitialContextFactoryImpl.getInitialContext(InitialContextFactoryImpl.java:318)
... 13 more

• SAP Solution Manager 7.2 SP04 - SP10
• Diagnostics Agents 
• Diagnostics Agent on the fly 

P4IOException , KBA , SV-SMG-DIA-SRV-AGT , Agent Framework , Problem