After bashing my head for a good while, I could make the ODBC 32 bits run. It was the VC ++ 2013 Redistributable.
My install is version 126.96.36.199.0. I can't believe how stupidly hard it is to get the simple ODBC. You must uncompress the Instant CLient plus ODBC in the same folder and then manually install VCRedist to get this running. GEEEZ.
I would consider moving away from MS Query/ODBC in general, and start using PowerQuery and yes, learn some of the "M" Language too. Excel is moving away from ODBC (my hunch from other blogs. Nothing official yet) and old DLL-style technologies, so it's worth catching up and going from there. Also you might consider PowerBI and really step away from ...
Checked official documents for this error and could see it as below:
Source the SAP IQ setup scripts using the same user that starts the
SAP IQ server.
This will set the LD_LIBRARY_PATH and other important environment
The error could be occurring due to not setting the appropriate environment variables on the host on which SAP IQ is running.