When using edquota to set user limits, the command displays this error. edquota updates all quota files that are on a mounted file system. A directory named quotas causes it to fail.
In one of the mounted file systems is a directory named quotas. To fix the problem, move the directory from the mounted file system and rename or delete it.
For example: If you have /usr/quotas/old_info, the directory /usr/quotas will cause edquota to fail. Either move /usr/quotas to /usr/old_quotas or delete the directory.