What is wrong with this line of code?

The guide you linked is wrong in two ways.

1. It suggests, that the server is distributed in an exe file format, while it is usually a file named server.jar
2. It saves the start script with the vbs extension instead of bat.

The correct way

1. Obtain the server executable from the official site.
   Note: This guide assumes, that the downloaded file is called server.jar. If not, you should rename it.

2. Type the following text into a notepad, and save it as start.bat in the same folder as your server executable jar-file.
   Note: You can change the amount of memory allocated to your server by changing the values after Xmx and Xms. Xmx sets the maximum amount of used RAM, Xms sets the amount of RAM allocated on start. It is recommended for the two to have the same value, but it isn't required. Append M to the value to indicate megabytes, or G to indicate gigabytes.

java -Xmx1024M -Xms1024M -jar server.jar nogui
pause

3. (After this you can follow the original guide.)
   Run the start.bat file, and you'll get an eula.txt file. Open it, and change the last false to true. Save and run the file again.

4. Now the server files should've generated, and the basic setup should be done. You might want to change some settings in the server.properties file.