UPDATE to linked server (Pervasive Database) is failing using OPENQUERY
This issue is caused by upgrading SQL Server from SQL2014 to SQL2016 or later.  The Microsoft OLE DB Provider for ODBC Drivers has changed.  It now has more ISO and other ODBC features support.  This is a breaking change for some ODBC connections.    

This driver (MSDASQL) is used to wrap an ODBC connection on the server, in this case, to the pervasive database and allow it to act as a linked server.  The wrapper allows both OPEN Query functionality as well as standard linked query calls. 

The issue with the change is that the new wrapper is sending extra data that is not being handled if you are using ODBC driver versions 11 or below for query activity.  It can not handle the additional information and will return an error on execution.  It will be able to connect, however. 

Version 12 of the pervasive ODBC driver will work for query only, but Open Query will not work. You will continue to get "unexpected catastrophic failure" on open query updates.

I recommend you upgrade to version 13.3.  This release from Actian will support both selects and updates and will solve the Open Query error. I do not know if you will need  support from Actian for the licensing of the driver.