Ya, I was right, you do not have the code in functions.php file.
In other words, you mixed an old installation with a new one.
You downloaded a previous version and install it, then update it, but you forgot to update the code in functions.php, because that's not the functions.php code available in the latest version.
Clear your browser temp files, redownload the package and follow the upgrade instructions listed in the first post.
EDIT: Use a decent editor, like TextPad or EditPlus2, look at the messed code you posted above...
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