While the Connect CDC (SQData) SQL Server Capture has been deprecated, the Apply Engine does support SQL Server as an Apply Target. The <sqdata_user> will need catalog view privileges determine target table keys and to perform SELECT, DELETE, INSERT, and UPDATE.
Microsoft’s best practice recommendation is to use Windows Authentication mode for SQL Server whenever possible. The main benefit is that this mode allows centralization of account administration for the entire enterprise in a single place: Active Directory. This dramatically reduces the chances of error or oversight. While SQData can be configured to operate with either mode, we highly recommend the use of Windows Authentication mode as it eliminates the specification of both user_name and password from Apply Engine scripts.
Check the current authentication mode using the SQL Server Management Studio (SSMS).