This is the first (and only) test line that requires out = 1.
The most common cause of this error is that there is nothing connected to the And chip's out pin. Output pins that are not connected to anything default to 0.
A second common problem is that you have not yet written and tested Not.hdl. The skeleton files have no implementation so they have nothing connected to their out pins. Therefore unimplemented parts always have 0 for their output values.
A less common problem is that you are running the And.tst script from a different directory than where you have your And.hdl. If you have made a working directory for your parts, be sure to copy the .tst and .cmp files into the working directory and run the .tst file from there.
If you have "out=out" in your And.hdl and have a tested Not.hdl in the same directory as your And.hdl, post your And.hdl so we can look at it. The source code can be removed from your post after finding the problem.