It works fine for me with vB4.03. I've tested nested quote posting the forum and that works perfectly, and also just tested creating a new article in the vBCMS and had no errors.
This was already installed when I upgraded from vB3.8.4 to vB4.0.3. And I've had it installed and working since vB3.6.4.
You might be running another plugin/product that is causing this error message, rather than nested quotes itself. Have you tried disabling nested quotes and seeing if the error still happens?
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