You seem to have hit upon a bug in eQUEST. I tried creating a heat pump chiller in a test model, and was unable to select "air-cooled" for the condenser type. In the DOE-2.2 Vol 2 Dictionary it specifically states that heat pump chillers can be either air cooled or water cooled (see page 189 under CHILLER, TYPE), and it appears that eQUEST should accept air cooled as an entry. I don't know how comfortable you are with the eQUEST input files, but I was able to get the model running correctly by editing the project.INP file in a text editor. I simply searched for the part of the file where the chillers are defined (do a search for "Chillers"). Then I changed the following line:
CONDENSER-TYPE = WATER-COOLED
to
CONDENSER-TYPE = AIR-COOLED
I also deleted the reference to the condenser water loop by removing the following line:
CW-LOOP = "Condenser Water Loop"
After making these changes, I reopened the file in eQUEST. The file opened without calling out any errors and I was able run the simulation and generate results.
So, in summary, it appears as though you can't select "air-cooled" in eQUEST, but you can model the heat pump chiller as air-cooled by editing the input file in a text editor.