Decided that since VPATH syntax seems to be involved, I would just redo the scan in a non-VPATH build. Works fine. So this seems to be a problem that Coverity gets messed up with the iquote syntax - avoid it by using non-VPATH build appears to circumvent the problem. I'll declare this done since I now have a workaround. Thanks for your assistance!

Bottom line: do NOT use VPATH builds with Coverity, at least not on this project.