DQ801E - using OPTION DIAGNOSTICS=CBS

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Issue/Introduction

Dataquery OPTION DIAGNOSTICS=CBS  gives error:
DQ801E - "THE FIRST COMMAND IN YOUR QUERY IS NOT RECOGNIZABLE TO DATAQUERY"  

Environment

CA Dataquery 14.0 and above

Resolution

The DQBATCH input card will generate a CBS trace in the PXX or MUF SYSOUT if the request is successful.

If for any reason the request cannot be processed the message DQ801E will be produced.

In our case the request without the DIAGNOSTICS card was getting:
DQ180I - QUERY EXECUTION WAS STOPPED BECAUSE NO ROWS WERE FOUND 

Additional Information

OPTION DIAGNOSTICS=
(Optional - Valid in DQL Mode only.) Produces Compound Boolean Selection diagnostics report or the request table. The format of the OPTION DIAGNOSTICS statement is as follows:
►►─ OPTION ─ DIAGNOSTICS= ─┬─ CBS ───┬────────────────────────────────────────►◄ ├─ OFF ◄ ─┤ └─ RQT ───┘
This option specifies printing of a Compound Boolean Selection diagnostics report, the request table, or no diagnostics.
Valid Entries:
CBS, OFF, or RQT
Default Value:
OFF
Note: If RQT is used, this statement should follow either the FIND or EXECUTE statement. Otherwise, it should precede the FIND or EXECUTE statement.