The OS 3.9 SetPatch included additional functionality that is no longer present in OS 3.1.4 and had been outsourced to other programs. The line in the Startup-sequence calling SetPatch should only read as follows:
SetPatch >NIL:
You need to fix your Startup-sequence accordingly. In particular, NOROMUPDATES, NONSDPATCH are no longer options SetPatch supports.