From what I recall this error occurred when running old versions of scripts and extensions.
What version of CNR are you running?
Also saw it once when in the case of Cable modem clients when the cable modem sends a DHCP request, it also sends a field call with the vendor encapsulated options, This field is set to the value "docsis 1.0" by cable modems. The cable modem doesn't expect a response to this field, however CNR logs a message saying that the policy you're using to respond to the modem doesn't have a Vendor Encapsulated Option specified.