That looks like the error from the first version of rp2040 firmware when it only supported linux/android. That means keys are missing or being cleared. I dont know if your lite is a true rp2040 which you can update, or a hwfly clone which you should contact the seller and see if it can be updated.
If you are making it into hekate then the chip is fine. Your issue lies in software on your sd card. You should delete everything on the card minus the payload.bin file, and then put plain atmosphere and hekate on the card. If that boots then you can start figuring out what was missing from...
The ninja's can't go after you just for making software that allows homebrew. They can only go after you if you distribute their property do things like including sig patches or make hardware. If they could go after software, spacecraft-nx, hwfly-nx githubs would be gone and so would...
Can someone point out what I seem to be missing here, I am using the precompiled kernel and I get this error when I run the script which I believe is causing my issues
File descriptor: 5
b''
entry 400168ed
throwing more
Performing hax...
Size: 0x6c68
b'820000000000686c'...