I have JVM version : "1.8.0_221", and have equivalent sqljdbc42.jar in this path C:\Program Files\SmartBear\ReadyAPI-2.8.0\bin\ext
But still it is giving error : 2019-08-29 15:36:58.367 - Error getting response; com.microsoft.sqlserver.jdbc.SQLServerException: This driver is not configured for integrated authentication.
I'm assuming you want to use integrated authentication (which means authenticating to the database with your user account, for example, the Windows account you are running SoapUI on).
For this to work you need to provide the native library (for Windows it is the sqljdbc_auth.dll). This is additional to providing the sqljdbc42.jar.
sqljdbc_auth.dll should go into the SoapUI\bin folder.