DIRECT_EXE warning

This one had me puzzled for a bit (SAS 9.2, Windows 2008, SQLNCLI10.1, OLEDB):

WARNING: The current setting of the DIRECTEXE libname option will not allow this SQL statement to be passed directly to the DBMS for processing.

Explicitly setting the DIRECT
EXE option to DELETE had no effect.  Assigning the library in a new session, and performing the update also worked fine.  Thankfully the SYSCC variable was not affected, so jobs / processes continued to run, but still…

Anyways, it turned out this was actually caused by the SASTRACE option!  Turning this OFF removed the warning.