Putting this out here in case anyone else runs into it.
Ran into an issue after updating a client from 8.3 to 10.4.
Windows 2016 Server running Laserfiche's bundled SQL 2008 Express install.
Repository schema update went through fine and was able to login OK. In testing it out though was getting a General Database Error 9008 every time I tried to make a copy of a document or folder. Same error when trying to bypass the recycle bin when deleting (Shift-Delete). Could import/create new documents and folders fine. The Event logs had reference to "'[SQL Server]DELETE failed because the following SET options have incorrect settings: 'ARITHABORT'" when this error occurred.
Based on this post https://answers.laserfiche.com/questions/147640/Migrating-Laserfiche-to-new-SQL-Server-and-ARITHABORT-settings enabled SQL Server Connection options “ansi warnings, ansi padding and arithmetic abort” (shown on screenshot), restarted SQL and Laserfiche services and the errors were resolved.