I am also facing the same issue, The error in server log is:
Level Time Message Source
SEVERE Jul 6, 2018, 10:14:36 AM Error executing tool. PublishServiceDefinition Job ID: jd4d2f7ef93184b018aa31289db319c0c : ERROR 001487: Failed to update the published service with the server-side data location. Please see the server's log for more details. ERROR 001369: Failed to create the service. Failed to execute (Publish Service Definition). Failed. Failed to execute (Publish Service Definition). System/PublishingTools.GPServer
SEVERE Jul 6, 2018, 10:14:36 AM Delegate job failed. System/PublishingTools.GPServer
SEVERE Jul 6, 2018, 10:14:34 AM Error executing tool. PublishServiceDefinition Job ID: jbd0147f18c3e43c783f0f511dbc0c4b7 : ERROR 001487: Failed to update the published service with the server-side data location. Please see the server's log for more details. ERROR 001369: Failed to create the service. Failed to execute (Publish Service Definition). System/PublishingToolsEx.GPServer
SEVERE Jul 6, 2018, 10:14:34 AM Failed to create the service.: Updating the server connection string for layer Gas Device failed. Attempted connection string was ENCRYPTED_PASSWORD=00022e68347042307051332f70792f41674672347666676f2f7372375a732f4133555257764171447067324c5335343d2a00;SERVER=localhost;INSTANCE="DSID=e12499c9-d26a-4b26-bc68-5ca4794dc002";DBCLIENT=sqlserver;DB_CONNECTION_PROPERTIES=localhost;DATABASE=NPU;USER=NPU9;AUTHENTICATION_MODE=DBMS;BRANCH=sde.DEFAULT. Table name is NPU.NPU9.PipelineDevice. Please verify the data exists on the server. System/PublishingToolsEx.GPServer
SEVERE Jul 6, 2018, 10:14:34 AM DoAfterSDExtraction failed. System/PublishingToolsEx.GPServer
SEVERE Jul 6, 2018, 10:14:34 AM SwizzleService failed. System/PublishingToolsEx.GPServer
Any help would be appreciated
Thanks
Vinay