Executing SP_Open cursor causes SMSS to have a severe error - tsql

Question

Our program executes a stored procedure VIA SP_Opencursor, i've managed to extract the exact call via a trace, and when running the code directly in SMSS, we get a severe error
declare #p1 int
set #p1=0
declare #p3 int
set #p3=16388
declare #p4 int
set #p4=8196
declare #p5 int
set #p5=0
exec sp_cursoropen #p1 output,N' EXEC [dbo].[EventSearchSP] ''hip'' ',#p3 output,#p4 output,#p5 output
select #p1, #p3, #p4, #p5
When running the above code we get the following error:
Executing SQL directly; no cursor.
Msg 0, Level 11, State 0, Line 0
A severe error occurred on the current command. The results, if any, should be discarded.
This code used to work, and only fairly recently has it been failing. It fails across all Databases on our instance (over 100)
When running the code on other servers, the procedure executes correctly and it does not fail.
The actual data of the Stored procedure is fairly generic, a single column of numbers. I don't belive it's the stored procedure itself as this problem is happening when executing any Stored procedure from the client program
I'm fast running out of ideas as to try to resolve the issue, does anyone know what could be causing this error to suddenly start, where it used to be working fine?

Answer 1

We've found the problem, and If anyone knows why it is a problem i would love to know so i can find a way around it.
We recently set XACT_ABORT ON feature in the connections on SQL server after doing research and it being generally accepted as best practice. However with this setting on we get the above error, after turning the feature off again, the procedure began working as before.
Unfortunately we turned XACT_ABORT ON in order to solve another issue, which we now need to find another solution to!