Operation aborted due to unrecoverable session errors

If someone is working with an open connection and scheduled process runs at the same time why is Toad Data Point treating it as shared connection rather than spawning a new one? How do we avoid this kind of connect failure?

Operation aborted due to unrecoverable session errors.
Connection is not in the closed state.

Without details on the steps that lead to your error message, my guess is that the issue lies with session management on the database side, and not on the client (Toad DataPoint) side.

TDP would not be normally "sharing" a connection with another process outside of itself. If this happens often, I would notify your DBA to check on the server configuration or permissions. For example, it's possible that the SQL Server database has been configured for single user mode. There may be other config options that control permissions at the user level, etc.