Cannot create a connection to data source (rsErrorOpeningConnection)

We have two servers with SSRS and SSAS. Both are running 2008R2. On SSRS server there are quite a few data sources using SSAS databases. All reports based on these data sources are working when I connect to Report Manager on SSRS server but when I try to open them on any workstation I am getting:

An error has occurred during report processing. (rsProcessingAborted)
Cannot create a connection to data source 'XYZ'. (rsErrorOpeningConnection)
The connection either timed out or was lost.
Unable to read data from the transport connection: An existing connection was forcibly closed by the remote host.
An existing connection was forcibly closed by the remote host

AD Delegation for Kerberos is turned on on both SSRS and SSAS rervers.

Whenever I try to connect from workstation following error is recorded in SSRS log:
processing!ReportServer_0-24!ec4!03/09/2023-08:05:35:: e ERROR: Throwing Microsoft.ReportingServices.ReportProcessing.ProcessingAbortedException: , Microsoft.ReportingServices.ReportProcessing.ProcessingAbortedException: An error has occurred during report processing. ---> Microsoft.ReportingServices.ReportProcessing.ReportProcessingException: Cannot create a connection to data source 'AC360'. ---> Microsoft.AnalysisServices.AdomdClient.AdomdConnectionException: The connection either timed out or was lost. ---> System.IO.IOException: Unable to read data from the transport connection: An existing connection was forcibly closed by the remote host. ---> System.Net.Sockets.SocketException: An existing connection was forcibly closed by the remote host
at System.Net.Sockets.NetworkStream.Read(Byte buffer, Int32 offset, Int32 size)
--- End of inner exception stack trace ---
at System.Net.Sockets.NetworkStream.Read(Byte buffer, Int32 offset, Int32 size)
at System.IO.BufferedStream.Read(Byte array, Int32 offset, Int32 count)
at Microsoft.AnalysisServices.AdomdClient.DimeRecord.ForceRead(Stream stream, Byte buffer, Int32 length)
at Microsoft.AnalysisServices.AdomdClient.DimeRecord.ReadHeader()
at Microsoft.AnalysisServices.AdomdClient.DimeReader.ReadRecord()
at Microsoft.AnalysisServices.AdomdClient.TcpStream.GetResponseDataType()
--- End of inner exception stack trace ---
at Microsoft.AnalysisServices.AdomdClient.XmlaClient.EndRequest()
at Microsoft.AnalysisServices.AdomdClient.XmlaClient.CreateSession(ListDictionary properties, Boolean sendNamespaceCompatibility)
at Microsoft.AnalysisServices.AdomdClient.AdomdConnection.XmlaClientProvider.Microsoft.AnalysisServices.AdomdClient.AdomdConnection.IXmlaClientProviderEx.CreateSession(Boolean sendNamespaceCompatibility)
at Microsoft.AnalysisServices.AdomdClient.AdomdConnection.ConnectToXMLA(Boolean createSession, Boolean isHTTP)
at Microsoft.AnalysisServices.AdomdClient.AdomdConnection.Open()
at Microsoft.ReportingServices.DataExtensions.AdoMdConnection.Open()
at Microsoft.ReportingServices.Diagnostics.DataExtensionConnectionBase.OpenDataSourceExtensionConnection(IProcessingDataSource dataSourceObj, String connectString, DataSourceInfo dataSourceInfo, String datasetName)
--- End of inner exception stack trace ---
at Microsoft.ReportingServices.Diagnostics.DataExtensionConnectionBase.OpenDataSourceExtensionConnection(IProcessingDataSource dataSourceObj, String connectString, DataSourceInfo dataSourceInfo, String datasetName)
at Microsoft.ReportingServices.OnDemandProcessing.RuntimeDataSource.OpenConnection(DataSource dataSourceObj, DataSet dataSetObj, OnDemandProcessingContext pc)
at Microsoft.ReportingServices.OnDemandProcessing.RuntimeDataSource.ProcessTransactionAndConnection(IJobContext jobContext, Int32 numDataSets, Boolean& concurrentDataSets, IDbConnection& connection, Boolean& closeConnection, TransactionInfo& transInfo, Boolean& isTransactionOwner, Boolean& transactionCanSpanConnections, Boolean& addedTransactionToGlobalDataSourceInfo)
at Microsoft.ReportingServices.OnDemandProcessing.RuntimeDataSource.Process()
at Microsoft.ReportingServices.OnDemandProcessing.RuntimeDataSource.ProcessConcurrent(Object threadSet)
--- End of inner exception stack trace ---;

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