I just had the same error, googled it, and ended up here. I am also trying to do the same thing on a Compaq Portable 386, so it must be something common with these machines.
This thread is recent, so I'll post what worked for me (mostly was following the instructions here:
https://retropaq.com/installing-windows-3-1-3-11/)
- used this version of WFW311
https://winworldpc.com/download/01c38063-1542-c38a-11c3-a7c29d255254
- used these drivers for the plasma display
https://www.retropaq.com/plasma/
- extract all files from all disk images and put in a single directory
- also copy plasma driver files in there
- edit setup.inf and put this line in under the [display] section below the vga = line:
plasma = 2:plasma.drv, "Compaq Portable Plasma", "100,96,96", 2:cga.2gr, 2:cgalogo.lgo, 2:vddcga.386, 2:plasma.3gr,, 2:cgalogo.rle
(don't copy and paste the line from retropaq, it has non-ansi quotation marks)
- copy directory to Compaq hard drive, boot machine, cd into dir, run setup
- in setup, it should detect the Compaq Portable Plasma as the display
- rest of the install worked without error!