Symptoms
After you perform an in-place upgrade of SQL Server components from Microsoft SQL Server 2012 to Microsoft SQL Server 2014 (SP2) or to 2016 SP1, the execution of the DBCC CLONEDATABASE command that's introduced in SQL Server 2014 SP2 or 2016 SP1 fails.
Resolution
This issue is fixed in the following cumulative update for SQL Server:Cumulative Update 1 for SQL Server 2016 Service Pack 1 (SP1)
Cumulative Update 4 for SQL Server 2014 Service Pack 2 (SP2)
Each new cumulative update for SQL Server contains all the hotfixes and all the security fixes that were included with the previous cumulative update. Check out the latest cumulative updates for SQL Server:Latest cumulative update for SQL Server 2016
Status
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.
References
Learn about the terminologythat Microsoft uses to describe software updates.