Not sure if this is the problem, but as far as i know, the parameters to the database url are case sensitive.
<connection-url>jdbc:microsoft:sqlserver://dbsqlserver\\devenv:1433;DatabaseName=userscdb</connection-url>
Change this to:
<connection-url>jdbc:microsoft:sqlserver://dbsqlserver\\devenv:1433;databaseName=userscdb</connection-url>
Note the change in case for 'DatabaseName'. See if it works
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