Solved! Go to Solution.
I had the exact issue this week. After a few hours on the phone with ESRI support, they discovered that it is a known issue with 10.2 that will be fixed in SP1. Until then browse to your scripts folder on both your desktop and server, rename the ExtractData.py and replace it with the file attached. Rerun/publish the models and you should be in good shape.
Below are the locations for the scripts directories for desktop and server.
Desktop (Win7): C:\Program Files (x86)\ArcGIS\Desktop10.2\ArcToolbox\Scripts
Server (Win2008): C:\Program Files\ArcGIS\Server\ArcToolbox\Scripts
Good Luck!
worked for me too... many MANY MANY THANKS