Weird priv issue ORA-01031: insufficient privileges

Just tried to run ALTER DATABASE LINK and got a privilege error. However, I can ALTER via the Toad GUI just fine (Toad does a DROP and then a CREATE instead of an ALTER). This ALTER command works in 2 different environments but not in another. Same DB same privs. I can run the Alter in SQLPLUS and it works. I can run it in a procedure and it works.
TOAD 13.0
Oracle 11.2.0.4

grant alter database link to user;

alter database link connect to identified by “password”;
Grant complete.

alter database link connect to identified by “password”;
Error at line 3
ORA-01031: insufficient privileges

Script Terminated on line 3.

You said “2 different environments” and “same DB same privs”. So, what is different?

Thats what Im trying to figure out. I was just eliminating the DB as the issue. My question is, is it possible that TOAD can have individual connection settings? This has happened to one other person in the same DB but different environment, just looking for ideas to pin it done. Other people are unable to replicate the issue

Toad has a separate set of settings for each windows user, but the same settings are shared for each connection.

Are you connecting as SYSDBA for one connection but not the other?

No normal user. It just odd that within TOAD if Execute via SQLPLUS it works