Tensor internal variables for higher-order elements

As stated by nate, your code is a mixture of import syntax from dolfinx and dolfin, and running your code with the docker container ghcr.io/scientificcomputing/fenics:2023-04-21 yields

Traceback (most recent call last):
  File "/root/shared/mwe.py", line 5, in <module>
    parameters["form_compiler"]["cpp_optimize"] = True
NameError: name 'parameters' is not defined

as your imports are not correct.

For interpolation syntax of legacy Dolfin, I would advice you to consider the following MWE:

from dolfin import *

parameters["form_compiler"]["quadrature_degree"] = 4


# Overall dimensions of rectangular prism device
scaleX = 2.0
scaleY = 1.0
scaleZ = 1.0

# N number of elements in each direction
Xelem = 2
Yelem = 2
Zelem = 2

# Define a uniformly spaced box mesh
mesh = BoxMesh(Point(0.0, 0.0, 0.0), Point(scaleX, scaleY, scaleZ), Xelem, Yelem, Zelem)


T1 = TensorElement(
    "Quadrature",
    mesh.ufl_cell(),
    degree=parameters["form_compiler"]["quadrature_degree"],
    symmetry=True,
    shape=(3, 3),
    quad_scheme="default",
)

W3 = FunctionSpace(mesh, T1)  # Tensor space

A1 = Function(W3)

T = Expression(
    (("1.0", "0.0", "0.0"), ("0.0", "1.0", "0.0"), ("0.0", "0.0", "1.0")), degree=1
)
A1.interpolate(T)

Please note that new users are adviced to use DOLFINx: GitHub - FEniCS/dolfinx: Next generation FEniCS problem solving environment as legacy FEniCS has not actively been developed since 2019.
See: The new DOLFINx solver is now recommended over DOLFIN for more details.