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V0226:
The specification states the following:
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Subclause 7.13, "<query expression>": <query expression> ::= [ <with clause> ] <query expression body> [ <order by clause> ] [ <fetch first clause> ] <with clause> ::= WITH [ RECURSIVE ] <with list> ... Conformance Rules Without Feature T122, "WITH (excluding RECURSIVE) in subquery", in conforming SQL language, a <query expression> contained in a <query expression> shall not contain a <with clause>.
Microsoft SQL Server 2008 R2 and Microsoft SQL Server 2012 vary as follows:
Transact-SQL does not support this feature. Transact-SQL supports a WITH keyword in queries, but the keyword takes a common table expression as a parameter.
See [ISO/IEC9075-1:2011] for the definition of "table".