It looks like you’re using a php tag within a php tag. I’d try something more like this…
<?php
echo do_shortcode('[button type="square" color="black" size="small"] Posted by '.get_the_author().' [/button]');
?>
or something like this…
<?php
$shortcode="[button type="square" color="black" size="small"] Posted by ".get_the_author().' [/button]';
echo "do_shortcode('$shortcode')";
?>
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