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Hi, I think that u run drush outside drupal installation / root folder. Drush needs either to run in drupal installed folder or aliases to be configured to point that folder.
Please cd to drupal folder and run drush
cd /your/drupalrootfolder/
Digital ocean support found this solution and I can now update with Drush.
Basically, to resolve this log in as root, and make sure you’re in the root user’s home directory:
cd ~
After doing this, move the .my.cnf file to rename it:
mv .my.cnf backup.my.cnf
I ran into the same issue. I updated the password in my .my.cnf file to the password found in the settings.php file for the database.