OK, so for documentation here, I found the issue:
This error resulted due to MySQL 5.6 has removed support for “SET OPTION” and my mysql client tools are probably on older version. Most likely 5.5 or 5.1.
Will try to update and post results here.
Thanks for the fast feedback. I did it on the console and it shows:
mysqldump: Couldn’t execute ‘SET OPTION SQL_QUOTE_SHOW_CREATE=1’: You have an err version for the right syntax to use near ‘OPTION SQL_QUOTE_SHOW_CREATE=1’ at l