Hi,
This error happens because of the string data size over 4 gb. It is not about the 1200 compatibility level you see.
The best way to resolve this error is to increase string storage capacity.
This is a multi-step process that starts with having the database at certain compatibility level (1100 or higher), setting the StringStoresCompatibilityLevel property on the object, and concludes with reprocessing the object.
You could see more and follow the steps in this article.
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