This happens because you have bracket symbols in user paths and whoever wrote this batch script didn’t thought of that.
Can be fixed by editing SetupAndroid.bat and wrapping %USERPATH% in quotes on line 56:
echo Current user path: "%USERPATH%"
Second problem you may encounter is SetupAndroid.bat unable to locate sdkmanager.bat even if it actually exists in <SDKPath>\cmdline-tools\latest\bin\sdkmanager.bat
In this case you need to add this line at the beginning (next line after after @echo off):
setlocal EnableDelayedExpansion
and replace % with ! on lines 67 and 68:
IF EXIST "!SDKMANAGER!" (
echo Using sdkmanager: !SDKMANAGER!