EQA2601E In order to SET MONITOR WRAP OFF, you need to first SET MONITOR COLUMN ON.
Explanation
SET MONITOR WRAP OFF was issued while SET MONITOR COLUMN is OFF. The command is rejected, because the Monitor window can show values in one scrollable line only when the setting of MONITOR COLUMN is ON.
Programmer response
Change the setting of MONITOR COLUMN to ON, and then issue SET MONITOR WRAP OFF.