I do have SSMS installed on the same server that the gateway is installed on and it can connect to the database just fine on the other vm. This should remove any concerns over networking.
The error message I get on the orignal server, the actual db server, that was running the gateway was at the bottom of the original post.
The on-premises data gateway installer failed to download install. (Sorry for the wrong word).
The client and server cannot communicate, because they do not possess a common algorith. This is after making a few security changes including turning off ssl3, tls 1.0, 1.1.