Can't Run Tsql As Job Or Scheduled Sp

I have the below code which works to rebuild indexes on a large db. I can run it from QA, but not as a job or as a sp in a job. I get the same error

Executed as user: ADCsqlexec. Retrieving Table List for DB Development [SQLSTATE 01000] (Message 0) ReIndexing Table Development..cms_appointments [SQLSTATE 01000] (Message 0) DBCC execution completed. If DBCC printed error messages, contact your system administrator. [SQLSTATE 01000] (Message 2528) Updating Statistics on Table Development..cms_appointments [SQLSTATE 01000] (Message 0) Could not complete cursor operation because the set options have changed since the cursor was declared. [SQLSTATE 42000] (Error 16958). The step failed.


Here is the tsql, any ideas

SET QUOTED_IDENTIFIER OFF

/* Start with master DB */
USE master

/* Create Variables */
DECLARE @DBName CHAR(64)
DECLARE @TableName CHAR(64)
DECLARE @FQTableName CHAR(64)
DECLARE @TempVar CHAR(256)

/* Create DB List */
DECLARE DBCursor CURSOR FOR
SELECT name
FROM master..sysdatabases where name = 'development'

OPEN DBCursor

FETCH NEXT
FROM DBCursor
INTO @DBName

/* Create Database Loop */
WHILE @@FETCH_STATUS = 0
BEGIN
/* Retrieve Table List */
PRINT 'Retrieving Table List for DB ' + @DBName

EXEC ('SELECT name AS TableName INTO ##TableNames FROM [' + @DBName + ']..sysobjects WHERE type = ''U''')

/* Open Table List */
DECLARE TableCursor CURSOR FOR
SELECT TableName
FROM ##TableNames

OPEN TableCursor

FETCH NEXT
FROM TableCursor
INTO @TableName

/* Create Table Loop */
WHILE @@FETCH_STATUS = 0
BEGIN
/* Add DB Name to Table Name */
SELECT @FQTableName = QUOTENAME(RTRIM(@DBName)) + '..' + QUOTENAME(RTRIM(@TableName))
SELECT @TableName = RTRIM(@DBName) + '..' + RTRIM(@TableName)
/* fix from ms */
SET ARITHABORT ON
SET QUOTED_IDENTIFIER ON
-- DBCC CHECKTABLE(mytable)

/* ReIndex Table */
PRINT 'ReIndexing Table ' + @TableName
DBCC DBREINDEX(@TableName)

/* Update Statics on Table */
PRINT 'Updating Statistics on Table ' + @TableName
EXEC ('UPDATE STATISTICS ' + @FQTableName)

/* Get Next Table Name */
FETCH NEXT
FROM TableCursor
INTO @TableName
END

/* Close Table Cursor */
CLOSE TableCursor
DEALLOCATE TableCursor

/* Remove Tempory Table */
DROP TABLE ##TableNames

/* Get Next Table Name */
FETCH NEXT
FROM DBCursor
INTO @DBName
END

/* Close DB Curosor */
CLOSE DBCursor
DEALLOCATE DBCursor

/* Finished */