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Report Server database version not accepted in SQL upgrade

I am upgrading SQL 2008 R2 to SQL 2016 Developer
Ran update advisor and took advice to install SQL 2008 service Pack 4, done successfully
However the feature rule step fails with Valid Database compatibility level and unsuccessful connection
The extended error message advises that:
The report server database is not a supported compatibility level or a connection cannot be established. Use Reporting Services Configuration Manager to verify the report server configuration and SQL Server management tools to verify the compatibility levels.
I knew nothing about the Reporting Service, but since then I have:

Checked Services that the SQL Server Reporting Services is started
Changed the security on SQL Server Reporting Services to Local system~Windows authentication
Stopped and started service
Run Reporting Service Config Manager as administrator. It required a connection on opening. Fails to Find connection to DESKTOP-PHACT and does not allow me to use other options.
Opened SSMS and opened report server. Even run a Crystal type report (see attachment)

Any suggestions?
SSMS_reportServer.jpg

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Nigel Keith-Walker

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Nigel Keith-Walker

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Maybe I was not so successful. Attached is the SSMS after the upgrade. There are no databases because there was an error with encrypted data in the Reporting Services.

This is not disastrous as it is a development sit and I can recreate copies of the Database from production
SQL2016_Error.jpg