If you paste my sample steps into the SourceSafe.bld sample and build the project (F7), does it build correctly? You should get build output something like this for those steps:
Building project step 'Cloak'...
Cloaked project $/Executables.
Process completed with exit code 1
Building project step 'Decloak'...
DeCloak project $/Executables.
Process completed with exit code 1
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