Unable to connect to SQL Server '(local)'. The step failed.

Today, a client informed me that he saw an error when calling a SQL Agent Job from a C# Windows Application.

I went to SQL Server Agent Job History to investigate. Here is what I saw:

A little search, I found the root cause: there is a step in job which is configured to use a database that existed when the step was created but has later been dropped.

Then, I tried to configure as the link below, the issue disappeared. I extract the article here to easily refer:

After verifying, noticed job step was configured in this way:

I have changed the ‘Database:’ option to ‘Master’ :

and ran the job again. It went fine without any issue
Refer: http://sqlserverstore.blogspot.com/2011/10/unable-to-connect-to-sql-server-local.html