Have you recently faced this error while trying to deploy using API 39.0 or later? This is happening to you because <picklist> tag was deprecated in API 39.0.

Here you have how to fix it:

Object definition before API 39.0:

<fields>
        <fullName>Status__c</fullName>
        <externalId>false</externalId>
        <label>Status</label>
        <picklist>
            <picklistValues>
                <fullName>No Started</fullName>
                <default>false</default>
            </picklistValues>
            <picklistValues>
                <fullName>In Progress</fullName>
                <default>false</default>
            </picklistValues>
            <picklistValues>
                <fullName>Completed</fullName>
                <default>false</default>
            </picklistValues>
            <restrictedPicklist>true</restrictedPicklist>
            <sorted>false</sorted>
        </picklist>
        <required>false</required>
        <trackTrending>false</trackTrending>
        <type>Picklist</type>
    </fields>

Object definition after API 39.0:

<fields>
        <fullName>Status__c</fullName>
        <externalId>false</externalId>
        <label>Status</label>
        <required>false</required>
        <trackTrending>false</trackTrending>
        <type>Picklist</type>
        <valueSet>
            <restricted>true</restricted>
            <valueSetDefinition>
                <sorted>false</sorted>
                <value>
                    <fullName>No Started</fullName>
                    <default>false</default>
                    <label>No Started</label>
                </value>
                <value>
                    <fullName>In Progress</fullName>
                    <default>false</default>
                    <label>In Progress</label>
                </value>
                <value>
                    <fullName>Completed</fullName>
                    <default>false</default>
                    <label>Completed</label>
                </value>
            </valueSetDefinition>
        </valueSet>
    </fields>