yes, your DSN should be defined on your server (on Windows, it's ODBC Data Sources control panel). This is good because it means that you don't need to do it on the client machines.
There might also be issues between 32 and 64-bit drivers/machines.
I should add that Perform Script on Server is required to take advantage of a single DSN on your server. You probably knew that ... but, it is a forum.
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I have ensured the FileMaker Server and the FileMaker DB are ODBC enabled; I have then created a User DSN and a System DSN for our Oracle DB (I wasn't sure which DSN should be created) through C:\Windows\SysWOW64\odbcad32.exe and tested the connections and they were both successful.
You defined 32bit DSN. FMS is 64bit so use C:\Windows\System32\odbcad32.exe on server for DSN used in ESS.
The folder name is confusing... WOW64 is Windows on Windows64, it is not for 64bit.
I have ensured the FileMaker Server and the FileMaker DB are ODBC enabled;
If you want to use data from Oracle then the settings you mention here are not relevant, and can in fact introduce a security issue if that is important. These settings are meant to let other applications access the FM data through xDBC and do nothing for letting FM access data from other sources.