We changed the format for RosettaScripts XML between Rosetta 3.7 and 3.8. The issue is that you have a Rosetta-3.8 style XML, but are attempting to use it with Rosetta 3.7.
I’d recommend using this XML with Rosetta 3.8 (or a recent weekly), or if you do want to use Rosetta 3.7 for some reason, take a look at the demos which came with Rosetta 3.7 for an example of the format of the XML to use.
(If you were going the other way – that is, attempting to use an old XML with a newer Rosetta, I’d tell you to use the conversion script, but we don’t have a conversion script to go “backwards” — you’d have to find some other workaround.)