this line
if ($1 == 1) return { Warn : $!dzrules( $3 , $2 ) }

creates a submenu line that reads when created with $1- = 1 snicks 1 as
Warn : $dzrules( 1 , snicks )

this in turn when selected well run this line
if ($isid) return $read($scriptdir $+ dzrules.txt,$1)

which well I assume returns the contents of line 1 of the file and this line begins with the word RULE etc etc etc

so you end up with a line that is like this
Warn : RULE etc etc etc

thus the source of your unknown command, you are attempting to execute the text of the file as a command.