Msg 8631 Internal error: Server stack limit has been reached on SQL Server 2012 from T-SQL script that runs on SQL Server 2008 R2

Question

I have an Script mostly that is generated by SSMS which works with-out issue on SQL Server 2008, but when I attempt to run it on a new fresh install of SQL Server 2012 I get an Msg 8631. Internal error: Server stack limit has been reached. Please look for
potentially deep nesting in your query, and try to simplify it.
The script itself doesn't seem to be all that deep or nested.  The script is large 2600 lines and when I remove the bulk of the 2600 lines, it does run on SQL Server 2012.  I'm just really baffled why something that SQL Server generated with very
few additions/changes AND that WORKS without issue in SQL Server 2008 R2 would suddenly be invalid in SQL Server 2012
I need to know why my script which is working great on our current SQL Server 2008 R2 servers suddenly fails and won't run on an new SQL Server 2012 server.  This script is used to create 'bulk' Replications on a large number of DBs saving a tremendous
amount of our time doing it the manual way.
Below is an 'condensed' version of the script which fails.  I have removed around 2550 lines of specific sp_addarticle statements which are mostly just copy and pasted from what SQL Management Studio 'scripted' for me went I when through the Replication
Wizard and told it to save to script.
declare @dbname varchar(MAX), @SQL nvarchar(MAX)
declare c_dblist cursor for
select name from sys.databases WHERE name like 'dbone[_]%' order by name;
open c_dblist
fetch next from c_dblist into @dbname
while @@fetch_status = 0
begin
print @dbname
SET @SQL = 'DECLARE @dbname NVARCHAR(MAX); SET @dbname = ''' + @dbname + ''';
use ['+@dbname+']
exec sp_replicationdboption @dbname = N'''+@dbname+''', @optname = N''publish'', @value = N''true''
use ['+@dbname+']
exec ['+@dbname+'].sys.sp_addlogreader_agent @job_login = N''DOMAIN\DBServiceAccount'', @job_password = N''secret'', @publisher_security_mode = 1, @job_name = null
-- Adding the transactional publication
use ['+@dbname+']
exec sp_addpublication @publication = N'''+@dbname+' Replication'', @description = N''Transactional publication of database
'''''+@dbname+''''' from Publisher ''''MSSQLSRV\INSTANCE''''.'', @sync_method = N''concurrent'', @retention = 0, @allow_push = N''true'', @allow_pull = N''true'', @allow_anonymous = N''false'', @enabled_for_internet
= N''false'', @snapshot_in_defaultfolder = N''true'', @compress_snapshot = N''false'', @ftp_port = 21, @allow_subscription_copy = N''false'', @add_to_active_directory = N''false'', @repl_freq = N''continuous'', @status = N''active'', @independent_agent = N''true'',
@immediate_sync = N''true'', @allow_sync_tran = N''false'', @allow_queued_tran = N''false'', @allow_dts = N''false'', @replicate_ddl = 1, @allow_initialize_from_backup = N''true'', @enabled_for_p2p = N''false'', @enabled_for_het_sub = N''false''
exec sp_addpublication_snapshot @publication = N'''+@dbname+' Replication'', @frequency_type = 1, @frequency_interval = 1, @frequency_relative_interval = 1, @frequency_recurrence_factor = 0, @frequency_subday = 8,
@frequency_subday_interval = 1, @active_start_time_of_day = 0, @active_end_time_of_day = 235959, @active_start_date = 0, @active_end_date = 0, @job_login = N''DOMAIN\DBServiceAccount'', @job_password = N''secret'', @publisher_security_mode = 1
-- There are around 2400 lines roughly the same as this only difference is the tablename repeated below this one
use ['+@dbname+']
exec sp_addarticle @publication = N'''+@dbname+' Replication'', @article = N''TABLE_ONE'', @source_owner = N''dbo'', @source_object = N''TABLE_ONE'', @type = N''logbased'', @description = null, @creation_script =
null, @pre_creation_cmd = N''drop'', @schema_option = 0x000000000803509F, @identityrangemanagementoption = N''manual'', @destination_table = N''TABLE_ONE'', @destination_owner = N''dbo'', @vertical_partition = N''false'', @ins_cmd = N''CALL sp_MSins_dboTABLE_ONE'',
@del_cmd = N''CALL sp_MSdel_dboTABLE_ONE'', @upd_cmd = N''SCALL sp_MSupd_dboTABLE_ONE''
EXEC sp_executesql @SQL
SET @dbname = REPLACE(@dbname, 'dbone_', 'dbtwo_');
print @dbname
SET @SQL = 'DECLARE @dbname NVARCHAR(MAX); SET @dbname = ''' + @dbname + ''';
use ['+@dbname+']
exec sp_replicationdboption @dbname = N'''+@dbname+''', @optname = N''publish'', @value = N''true''
use ['+@dbname+']
exec ['+@dbname+'].sys.sp_addlogreader_agent @job_login = N''DOMAIN\DBServiceAccount'', @job_password = N''secret'', @publisher_security_mode = 1, @job_name = null
-- Adding the transactional publication
use ['+@dbname+']
exec sp_addpublication @publication = N'''+@dbname+' Replication'', @description = N''Transactional publication of database
'''''+@dbname+''''' from Publisher ''''MSSQLSRV\INSTANCE''''.'', @sync_method = N''concurrent'', @retention = 0, @allow_push = N''true'', @allow_pull = N''true'', @allow_anonymous = N''false'', @enabled_for_internet
= N''false'', @snapshot_in_defaultfolder = N''true'', @compress_snapshot = N''false'', @ftp_port = 21, @allow_subscription_copy = N''false'', @add_to_active_directory = N''false'', @repl_freq = N''continuous'', @status = N''active'', @independent_agent = N''true'',
@immediate_sync = N''true'', @allow_sync_tran = N''false'', @allow_queued_tran = N''false'', @allow_dts = N''false'', @replicate_ddl = 1, @allow_initialize_from_backup = N''true'', @enabled_for_p2p = N''false'', @enabled_for_het_sub = N''false''
exec sp_addpublication_snapshot @publication = N'''+@dbname+' Replication'', @frequency_type = 1, @frequency_interval = 1, @frequency_relative_interval = 1, @frequency_recurrence_factor = 0, @frequency_subday = 8,
@frequency_subday_interval = 1, @active_start_time_of_day = 0, @active_end_time_of_day = 235959, @active_start_date = 0, @active_end_date = 0, @job_login = N''DOMAIN\DBServiceAccount'', @job_password = N''secret'', @publisher_security_mode = 1
-- There are around 140 lines roughly the same as this only difference is the tablename repeated below this one
use ['+@dbname+']
exec sp_addarticle @publication = N'''+@dbname+' Replication'', @article = N''DB_TWO_TABLE_ONE'', @source_owner = N''dbo'', @source_object = N''DB_TWO_TABLE_ONE'', @type = N''logbased'', @description = null, @creation_script
= null, @pre_creation_cmd = N''drop'', @schema_option = 0x000000000803509D, @identityrangemanagementoption = N''manual'', @destination_table = N''DB_TWO_TABLE_ONE'', @destination_owner = N''dbo'', @vertical_partition = N''false''
EXEC sp_executesql @SQL
fetch next from c_dblist into @dbname
end
close c_dblist
deallocate c_dblist
George P Botuwell, Programmer

Answer 1

Hi George,
Thank you for your question. 
I am trying to involve someone more familiar with this topic for a further look at this issue. Sometime delay might be expected from the job transferring. Your patience is greatly appreciated. 
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