The error you report seeing: ORA-65535 is not something Toad can cause, it’s a known Oracle bug with some versions - but not 11g R2 - so here is the Oracle doc copied from oracle support site - I think you have a oracle client or server issue. And yes I get it only happened when you uograded toad - so I have no idea why this is happening:
Sqlplus SSL Connection with PKCS#11 Wallet Fails with ORA-65535 on Windows Client (Doc ID 758419.1)
In this Document
This document is being delivered to you via Oracle Support’s Rapid Visibility (RaV) process, and therefore has not been subject to an independent technical review.
Advanced Networking Option - Version: 10.2 to 126.96.36.199
You have configured SSL connection to the Database server with PKCS#11 wallet. And while trying to login from sqlplus from windows client it fails:
SQL*Plus: Release 188.8.131.52.0 - Production on Wed Jul 9 19:38:39 2008
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ORA-65535: Message 65535 not found; product=RDBMS; facility=ORA
This issue does not occur with PKCS#12 software wallet.
Sqlnet client trace shows the below:
ntzGetStringParameter: entry ntzGetStringParameter: exit ntzGetStringParameter: entry ntzGetStringParameter: exit ntzscr: ntzSetOid failes with error: 562. ntzGetStringParameter: entry ntzGetStringParameter: exit
This isssue is the Bug 6193802
Apply the patch which contains the fix for the Bug 6193802. The below Windows Budle Patches include the fix for this bug.
10.2.0.3 Patch 13 and above.
10.2.0.4 Patch 3 and above.
This fix will be included in 10.2.0.5 Patch Set.
184.108.40.206 Patch 11 and above.
220.127.116.11 Patch 2 and above.
Refer Note 161549.1 for details on Windows Bundle Patches.
BUG:7311014 - SSL CONNECTION WITH PKCS#11 WALLET FAILS WITH ORA-65535 ON WINDOWS 18.104.22.168
BUG:6193802 - SQLPLUS REPORTS ERROR WHEN USING PKCS11 WALLET WITH RDBMS 10.2.0.3 WIN PATCH 6