I think I stumbled on the solution but I dont really understand why this fixed it.
So, early on I was just trying anything (trial and error). I put the dbjodbc.dll in system/win32. But it was already in SqlAnywhere/win32. Both paths are in my PATH.
Everything started working when I removed dbjodbc.dll from system/win32
Does that make sense? What is the reason for that?
Thanks for your help.