Removing double quotes from variables in batch file creates problems with CMD environment

You have an extra double quote at the end, which is adding it back to the end of the string (after removing both quotes from the string).

Input:

set widget="a very useful item"
set widget
set widget=%widget:"=%
set widget

Output:

widget="a very useful item"
widget=a very useful item

Note: To replace Double Quotes " with Single Quotes ' do the following:

set widget=%widget:"='%

Note: To replace the word "World" (not case sensitive) with BobB do the following:

set widget="Hello World!"
set widget=%widget:world=BobB%
set widget

Output:

widget="Hello BobB!"

As far as your initial question goes (save the following code to a batch file .cmd or .bat and run):

@ECHO OFF
ECHO %0
SET BathFileAndPath=%~0
ECHO %BathFileAndPath%
ECHO "%BathFileAndPath%"
ECHO %~0
ECHO %0
PAUSE

Output:

"C:\Users\Test\Documents\Batch Files\Remove Quotes.cmd"
C:\Users\Test\Documents\Batch Files\Remove Quotes.cmd
"C:\Users\Test\Documents\Batch Files\Remove Quotes.cmd"
C:\Users\Test\Documents\Batch Files\Remove Quotes.cmd
"C:\Users\Test\Documents\Batch Files\Remove Quotes.cmd"
Press any key to continue . . .

%0 is the Script Name and Path.
%1 is the first command line argument, and so on.

Your conclusion (1) sounds wrong. There must be some other factor at play.

The problem of quotes in batch file parameters is normally solved by removing the quotes with %~ and then putting them back manually where appropriate.

E.g.:

set cmd=%~1
set params=%~2 %~3

"%cmd%" %params%

Note the quotes around %cmd%. Without them, path with spaces won't work.

If you could post your entire batch code, maybe more specific answer could be made.