Session store has been configured with proper schema and the odbc.ini file is properly configured. The Policy Server Management Console is able to connect to the session store, but when the policy server is started it fails to connect with a 1063 error.
Session store user did not have permissions to the store. This allowed the Management Console connection test to succeed since the credentials were correct, but caused the connection error during startup since the Policy Server determined the DB to be in an unusable state due to insufficient permissions.
Once the SQL permissions were updated by the DBA, the policy server was able to connect and a user successfully log in to a persistent realm.