I do believe (once again) many questions are on the same topic (string constraints, or splitting strings).
Instead of giving you the whole code, I'm going to give you a template and explain why %~dpVAR! didn't work.
Firstly, why %~dpVAR! did't work.
Before I get into modifiers, let's discuss parameters. You may know that batch files can parse parameters to each other. These parameters can be called by using a single percent sign (%) in front of the numbers 0-9. As far as I'm aware (someone might have made a way for more to be parsed), only 9 parameters can be parsed. You may think that is wrong (there's 10 parameters right?). Parameters 1-9 are parsed to the batch file (or function within one), %0 is the file path of the batch file (or function name). If you look, %~dp0 shares some (not really) resemblance to %0. This will be discussed below.
Secondly, the term %~dp0 has modifiers in it. Modifiers are things that modify variables (only in the case of parameters and those declared in for loops, you know the ones with double percent signs like %%i) and parameters. The modifier d expands the parameter to a drive letter only while p expands the parameter to a path only. You may think that these would contradict themselves, but parameters can be combined to create extremely wacky formats.
So, as you can see, you attempt at replacing 0 with your variable name failed because it's not specified for those sort of things.
Now, on to the template.
You can constrain variables (and put them into other variables) like this:
set variable=!variable:~offset,amount!
Don't worry if that seems confusing, I'm about to explain the components.
Firstly, notice that there is no /a switch. This is because this is not a mathematical function (don't really know why I added this). So, before I explain it, here's an example of what it would do to a variable name numbers that has the value of 0123456789.
set numbers=!numbers:~5,1!
By using that line of code, numbers would now equal 5. This is because it is recreating the variable with a smaller version of the original value (gee this is hard to explain). As you can see, there is a 5 where offset was on the template above. This is because it is skipping the first 5 characters and setting the variable as the next amount, or 1 character (I really hope you're getting this).
So basically, it sets a variable as a shorter value of a different (or the same) variable determined by the offset and the amount of characters to contain in it.
I really hope this helps because I probably wouldn't understand a word of this.
Can someone redirect this poor guy to a link explaining this better (I tried, ok!)?