Hmm. Your attempt to produced inline ASM was pretty credible.
I already mentioned symbol conflicts...
#include <m32def.inc>
Get rid of that; it's avr assembler, and the equivalent is already included.
"OUT DDRA,R16 \n"
But symbols need to be referenced "specially." See
https://www.nongnu.org/avr-libc/user-manual/inline_asm.html (The tutorial you found wasn't very good.)
"WLP1: DEC \n"
There was a type or two - missing argument for DEC, here. And I think one other...
My favorite error is the "garbage at the end of line"
And THAT, of course, is the gnu assembler's way of telling you that "08" is not a valid octal number. Obviously.It's a C think that nn is decimal, 0nn is octal, and 0xnn is hex...
Try this version:
#include <avr/io.h>
void setup(){
asm (
"LDI R16,0xFF \n"
"OUT %0,R16 \n"
"CLR R15 \n"
"CLR R14 \n"
"CLR R13 \n"
"CLR R12 \n"
"CLR R11 \n"
"CLR R10 \n"
"CLR R9 \n"
"CLR R8 \n"
"pploop: \n"
"LDI R16,0x0A \n"
"INC R15 \n"
"CP R15,R16 \n"
"BRNE nd1 \n"
"CLR R15 \n"
"nd1: BRNE nd1w \n"
"INC R14 \n"
"nd1w: CP R14,R16 \n"
"BRNE nd2 \n"
"CLR R14 \n"
"nd2: BRNE nd2w \n"
"INC R13 \n"
"nd2w: CP R13,R16 \n"
"BRNE nd3 \n"
"CLR R13 \n"
"nd3: BRNE nd3w \n"
"INC R12 \n"
"nd3w: CP R12,R16 \n"
"BRNE nd4 \n"
"CLR R12 \n"
"nd4: BRNE nd4w \n"
"INC R11 \n"
"nd4w: CP R11,R16 \n"
"BRNE nd5 \n"
"CLR R11 \n"
"nd5: BRNE nd5w \n"
"INC R10 \n"
"nd5w: CP R10,R16 \n"
"BRNE nd6 \n"
"CLR R10 \n"
"nd6: BRNE nd6w \n"
"INC R9 \n"
"nd6w: CP R9,R16 \n"
"BRNE cready \n"
"CLR R9 \n"
"cready: CLT \n"
"BLD R8,0 \n"
"OUT %1,R8 \n"
"LDI R17,8 \n"
"WLP0: DEC R17 \n"
"BRNE WLP0 \n"
"CLR R8 \n"
"LDI R16,0x05 \n"
"SET \n"
"BLD R8,0 \n"
"CP R15,R16 \n"
"BRCS d2 \n"
"BLD R8,1 \n"
"d2: CP R14,R16 \n"
"BRCS d3 \n"
"BLD R8,2 \n"
"d3: CP R13,R16 \n"
"BRCS d4 \n"
"BLD R8,3 \n"
"d4: CP R12,R16 \n"
"BRCS d5 \n"
"BLD R8,4 \n"
"d5: CP R11,R16 \n"
"BRCS d6 \n"
"BLD R8,5 \n"
"d6: CP R10,R16 \n"
"BRCS d7 \n"
"BLD R8,6 \n"
"d7: CP R9,R16 \n"
"BRCS ok \n"
"BLD R8,7 \n"
"ok: OUT %1,R8 \n"
"LDI R17,3 \n"
"WLP1: DEC R17 \n"
"BRNE WLP1 \n"
"NOP \n"
"RJMP pploop\n"
:: "I"(_SFR_IO_ADDR(DDRD)), "I"(_SFR_IO_ADDR(PORTD))
);
}