Reformat the SD card to FAT32. If you don't see that option, that is because your SD card is larger than 32 GB so you will have to use an alternative program to format it such as GUIFormat.
What did you do before getting this error?
Default is sufficient but you can choose 32K.
Well Hekate isn't a CFW so I'll assume you meant Atmosphere. Since you aren't sure which one you used, just try both to see if one works or if it can shed some more light on the situation.
You can either use ReiNX which bundles everything from the get-go or manually put the necessary patches yourself from this thread. By the way, if you go with the second option, you will need to update your patches whenever a new firmware is released because those patches are firmware-specific unlike the ones used by ReiNX. Just something else to keep in mind when choosing which CFW you want to use.
Lets back up. When you installed firmware 7.0.1, did you select the version with or without exFAT? And how is your SD card formatted?
Judging from your description, it seems you have downloaded the latest Kosmos which has Autoboot enabled by default. This can be changed multiple ways from editing the hekate_ipl.ini fie to have autoboot changed from 1 to 0, holding volume (-) when sending Hekate then navigating to Options, or using the homebrew application Kosmos toolbox. To enter the Homebrew menu, you have to hold R when pressing the Album. And FAT32 is recommended over exFAT as it works on all firmware versions and does not corrupt. There are also numerous ways to bypass the 4 GB limit on FAT32 such as splitting files or USB/network installation.
Congrats, you burnt the fuses of your switch.
