SYMPTOM:
By design, in Strategy Developer 10.2 installed on 32-bit Windows operating system machines, 2-tier (Direct) connection is not available in Project Source Manager, which is documented in technical note below.
KB299786: 2-tier (Direct) connection is not available in Project Source Manager in MicroStrategy Developer 10.3 installed on 32-bit Windows operating system machines
However, 2-tier (Direct) project source can be created by right clicking on existing project source.
CAUSE:
It is a defect that 2-tier (Direct) connection is available by right clicking on existing project source.
The Strategy Internal Reference Number for the issue discussed in this technical note is DE40014.