XL Connect Unable to Access SQL Metadata

Hi, I have install XL Connect server and client both side. But, I get this error msg when I using Epicor XL connect in excel
But I was successfully test connection in Application Setting.
Then, I go to server side test and get below error msg
"The edition of reporting services that you are using requires that you use local SQL server relational database for report data sources and the report server database." is not supported in this edition of Reporting Services. (rsOperationNotSupported)

My data source sql are Ms sql server 2016. XL connect using Ms sql server 2008 Express.
Both install on different server. Is it I need to install XL connect on Epicor SQL server to solve this error? Appreciate for any reply.