EDIT: This has been fixed in microtype version 3.0a.

Beginning with version 3.0, microtype applies some patches to improve protrusion at "inner margins", e.g. in \items (see chapter 9 of the microtype doc). This requires some gymnastics, and here the active character from csquotes interferes in a bad way. A quick fix would be prevent the patching with microtypesetup{nopatch=item}, either for the whole document or only the problematic case. A better fix (which will be included in the next version) would be to patch the pertinent microtype command:

\documentclass{article}

\usepackage{microtype}

\usepackage{csquotes}
\MakeAutoQuote{“}{”}
\usepackage{etoolbox}

\begin{document}

\begin{itemize}
\microtypesetup{nopatch=item} 
  \item “foo” some more text\\ “another quote”
\end{itemize}

\makeatletter 
\patchcmd\MT@get@prot{\noindent}{\noindent\@disablequotes}{}{}
\makeatother
\begin{itemize}
  \item “foo” some more text\\ “another quote”
\end{itemize}

\end{document}

(In a real document, you'd move the \MT@get@prot patch to the preamble, of course.)

EDIT: This has been fixed in microtype version 3.0a.

Beginning with version 3.0, microtype applies some patches to improve protrusion at "inner margins", e.g. at the beginning of \items (see chapter 9 of the microtype doc). This requires some gymnastics, and here the active character from csquotes interferes. A quick fix would be to prevent the patching with \microtypesetup{nopatch=item}, either for the whole document or only the problematic case. A better fix (which will be included in the next version) would be to patch the pertinent microtype command:

\documentclass{article}

\usepackage{microtype}

\usepackage{csquotes}
\MakeAutoQuote{“}{”}
\usepackage{etoolbox}

\begin{document}

\begin{itemize}
\microtypesetup{nopatch=item} 
  \item “foo” some more text\\ “another quote”
\end{itemize}

\makeatletter 
\patchcmd\MT@get@prot{\noindent}{\noindent\@disablequotes}{}{}
\makeatother
\begin{itemize}
  \item “foo” some more text\\ “another quote”
\end{itemize}

\end{document}

(In a real document, you'd move the \MT@get@prot patch to the preamble, of course.)

Beginning with version 3.0, microtype applies some patches to improve protrusion at "inner margins", e.g. in \items (see chapter 9 of the microtype doc). This requires some gymnastics, and here the active character from csquotes interferes in a bad way. A quick fix would be prevent the patching with microtypesetup{nopatch=item}, either for the whole document or only the problematic case. A better fix (which will be included in the next version) would be to patch the pertinent microtype command:

\documentclass{article}

\usepackage{microtype}

\usepackage{csquotes}
\MakeAutoQuote{“}{”}
\usepackage{etoolbox}

\begin{document}

\begin{itemize}
\microtypesetup{nopatch=item} 
  \item “foo” some more text\\ “another quote”
\end{itemize}

\makeatletter 
\patchcmd\MT@get@prot{\noindent}{\noindent\@disablequotes}{}{}
\makeatother
\begin{itemize}
  \item “foo” some more text\\ “another quote”
\end{itemize}

\end{document}

(In a real document, you'd move the \MT@get@prot patch to the preamble, of course.)

EDIT: This has been fixed in microtype version 3.0a.

Beginning with version 3.0, microtype applies some patches to improve protrusion at "inner margins", e.g. in \items (see chapter 9 of the microtype doc). This requires some gymnastics, and here the active character from csquotes interferes in a bad way. A quick fix would be prevent the patching with microtypesetup{nopatch=item}, either for the whole document or only the problematic case. A better fix (which will be included in the next version) would be to patch the pertinent microtype command:

\documentclass{article}

\usepackage{microtype}

\usepackage{csquotes}
\MakeAutoQuote{“}{”}
\usepackage{etoolbox}

\begin{document}

\begin{itemize}
\microtypesetup{nopatch=item} 
  \item “foo” some more text\\ “another quote”
\end{itemize}

\makeatletter 
\patchcmd\MT@get@prot{\noindent}{\noindent\@disablequotes}{}{}
\makeatother
\begin{itemize}
  \item “foo” some more text\\ “another quote”
\end{itemize}

\end{document}

(In a real document, you'd move the \MT@get@prot patch to the preamble, of course.)