I am about to shoot myself. Spent few weeks now trying to solve this issue. We have an ASP.NET MVC 4 web app that uses SQL Server 2012 and Entity Framework as ORM and Unity
In our case, the issue "Physical connection is not usable" appeared only if MultipleActiveResultSets=true.
The issue as been fixed by our customer by removing the "network packet analyzer" (In french: analyseur de trames réseau)