Earlier quoted context omitted.
No? It ensures that malloc didn't return a NULL pointer and the '&& "memory error"' is a common pattern to add a comment describing why an assert() statement failed.
One problem with it is that on most compilers if you compile with optimizations it will remove the assertion. Now the code is no longer guarded against malloc failures and will just segfault. If the intent is to teach people how to handle malloc failures gracefully, it's not that great of an example.
The compiler will realise that:
assert(assert(line != NULL && longest != NULL && "memory error");
Is equivalent to: assert(line != NULL && longest != NULL);
But there doesn't seem anything wrong with that.