that depends on the cmd version of windows, this other string that i give to you is simpler and will not fail ever, this actually works even in dos I recommend using this other string if the first one gives any problems to anyone.
%1 will just repeat the name of the framfile or any file you want. for example, if launchbox launches the file MYGAME (no quotes, no file extension) this .bat will replace %1 this way
Daphne.exe MYGAME vldp -fullscreen -x 1920 -y 1080 -framefile "..\..\Systems\Daphne\Roms\MYGAME\MYGAME.txt"
You only need 1 .bat to launch all the games and the command is very simple and clean.