The solution for this is to change your Session Character Set to ASCII.
It affects the "--" comments as well as the long string values in views or procedure, creating the
--_UNICODE '010C00650073006B00E100200050006F016100740061'XCV or with an extention of XCF.
Thanks RXCORE for the help. Your solution works but what is the underlying issue. I have seen it hapenning in some procedure while other are not effected and both types have plenty of comments in the code.