Looking in your .log you will find
LaTeX2e <2016/03/31>
and a little later
Package: fontspec 2017/02/12 v2.6 Font selection for XeLaTeX and LuaLaTeX
which gives the warning
*************************************************
* fontspec warning: "tu-clash"
*
* I have found the tuenc.def encoding definition file but the TU encoding is
* not defined by the LaTeX2e kernel; attempting to correct but you really
* should update to the latest version of LaTeX2e.
*************************************************
As this says, you have an updated fontspec.def (matching the LaTeX 2017/01/01 release), but have an older format. You can see that from the file version line
File: tuenc.def 2017/02/22 v2.0g Standard LaTeX file
I'm not clear how you've updated fontspec but missed the LaTeX kernel update, but it's not surprising that 'bad stuff happens' as the changes made were tricky and do need to match up.
Either update LaTeX (and rebuild your formats) or switch back to the earlier release of fontspec.
xelatexon an up-to-date system. Even withlualatex, the file compiles (though with a warning about not usingxltxtrawith LuaTeX). The file also does contain a 'line of text':This is test..? Could you give some sense of the nature of your installation? E.g., add\listfilesto the preamble and post the relevant-seeming portions of the.log? – jon Mar 05 '17 at 05:34fmtutilrather thanfmtutil-sysso you are using an old format even after texlive updates the main formats. – David Carlisle Mar 05 '17 at 11:36