I know that USBD.SYS should (must) be first,
That's also what I remembered. It was below the others and above the newly added X type. After moving USBD.SYS above, I had the same problem with phase 2.
Yes, Lars has fixed his drivers to accept any order.
I believe the installer runs "LVM.EXE /RediscoverPRM" from STARTUP.CMD,
Yes. I've used the program object in the drives folder, but that didn't help either.
add "sleep 2" to the beginning of STARTUP.CMD, then continue to phase 2.
No, that won't help. I had renamed STARTUP.CMD from another partition to avoid automatic execution. In phase 2 the desktop booted and I executed STARTUP.CMD manually, but with the same message.
Now I remember that there was a message that AiRBoot doesn't work anymore and that it needs to be manually reinstalled first. But AiRBoot had worked. At phase 2 it boots to the CSM to let it boot from harddisk, which boots the correct partition. After these tries, AiRBoot still works normally.
Phase 2 uses a slightly modified version of your own CONFIG.SYS, from the hard disk. If
there is something odd in there, it may not work quite right.
Yes, the order of USBD.SYS, as I wrote. It's all very similar to eCS, where I was more involved.