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.
This issue is fixed in the following cumulative update for SQL Server:
Cumulative Update 1 for SQL Server 2016 Service Pack 1 (SP1)
Microsoft has confirmed that this is a problem in the Microsoft products that are listed in the "Applies to" section.
Learn about the terminologythat Microsoft uses to describe software updates.