After hours of researching and trying a bunch of solutions I managed to "solve" the problem.
First things first, I have no idea what causes this problem. Apparently, the program id: 010000000000001f corresponds to DBI installer. However, I couldn't find any folder nor file with that name. I've seen many posts suggesting to delete the folder with that name in case you have it. (I didn't). I also tried deleting everything related to DBI, not only de DBI.nro but also a folder I had with that name. It didn't work.
The problem I was experiencing is very similar to this other post:
got this error randomly as I loaded a game installed using tinfoil on my mariko w switch. turning off the switch and running the payload gives the same error right after the switch logo appears. when loading into OFW it gets stuck on the switch logo. this error happened when I was running atmosphere 1.70 on firmware 18.0 and I updated atmosphere to 1.71 to try to fix it. from what I've seen on other threads this issue is a corrupted nand and the solution is to wipe it by going into the switch repair mode (by pressing both volume and power) it just stalls on the switch logo the same as if I...
"turning off the switch and running the payload gives the same error right after the switch logo appears."
The image in the post is exactly what I would see on my console right before the main menu should appear.
I want to mention that I tried and triple checked to have all the different files updated. I updated atmosphere from the original github website. I updated hekate and the sigpatches as well as DBI and other homebrew programs from their official releases.
What actually worked:
After injecting the Hekate payload and launching atmosphere I held down both volume buttons (no power button, only volume) as the screen was turning on and the Switch logo appeared. After the logo, it didn't crash. Instead, I entered the Switch's Recovery mode.
In recovery mode you can format your console and keeping your user data (There are 3 options in recovery mode, I chose option 2, it's very easy to spot and it mentions that this option won't delete images and videos). However, I made sure to make a backup copy of my entire sd card on my pc beforehand. (After formatting, my sd was intact. At least, I didn't notice any changes. Make sure you watch a video on Youtube on how to do backups in case you missed something)
Once the formatting was done the console started as if it was brand new. By that I mean that it made me choose the language and configure it as if it was the first time it was being turned on.
All of the games that I had installed were no longer in my screen and I had to reinstall them. However, there was only one game that I installed in my sd card with DBI and that I didn't have a backup in checkpoint. When I reinstalled the game, my save file was untouched. I didn't loose any game progression (obviously because the game was installed in the sd card).
Long story short, in my experience you can format your switch using the middle option in recovery mode that keeps your user data and your sd won't be affected even though the console says it will wipe your data and files won't work (and even if it does, you should be able to use your backup). The only thing I would worry about is loosing game files that were installed in the internal storage (NAND) and that you don't have a backup of.
My rule of thumb is to leave a good amount of space in the internal storage so that the console itself isn't clogged and save everything in my sd card. Make backups of the sd card after long sessions of gameplay (both in checkpoint to save your game files and the sd into your pc) using the usb file transfer option. This way you won't need to be touching your sd card and you HIGHLY decrease the chances of corrupting your sd card (I had this happen a lot of times when removing the sd card from my pc even after safely ejecting it).
I hope that all my struggle helps someone with the same or similar problem. Good luck!
