WordPress 4.8.1 uses mysql_connect which doesn’t work with PHP 7

This sounds like you do not have mysqli installed and/or enabled on your server. IIRC mysqli was added to php in version 5.5, and the older mysql extension had been deprecated and fully retired since then. If you upgraded from a very old PHP version it might be that you still need the extra step of enabling mysqli.

(wordpress checks for the existence of mysqli and only if it does not exist tries the older mysql functions.)

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