If you're using 64bit, then this error most likely results from the fact 64-bit SQL Server cannot use Jet, as there is no 64-bit OLEDB provider for Jet.
I came across a possible word-around, which could be to execute the following script in MSSMS, and then restart the MSSQLSERVER service:
EXEC
sp_configure 'show advanced options', 1;
GO
RECONFIGURE
;
GO
EXEC
sp_configure 'Ad Hoc Distributed Queries', 1
GO
RECONFIGURE
;
GO
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