dbcc upgrade_object returns a quoted identifier error if:
The compiled object was created in a pre-11.9.2 release with quoted identifiers active (set quoted identifiers on).
Quoted identifiers are not active (set quoted identifiers off) in the current database.
To avoid this error, activate quoted identifiers before running dbcc upgrade_object. When quoted identifiers are active, you must use single quotes instead of double quotes around quoted dbcc upgrade_object keywords.
If quoted identifier errors occur, use the set command to activate quoted identifiers, and then run dbcc upgrade_object to upgrade the object.
For compiled objects created in 11.9.2 or later, the upgrade process automatically activates or deactivates quoted identifiers as appropriate.
Quoted identifiers are not the same as literals enclosed in double quotes. The latter do not require you to perform any special action before the upgrade.