As Im not the only one who's run into this error with the Nexus 7 2013 lte with lollipop 5.1.1:

I found out its not necessarily true, by a 'happy accident' using wugfresh toolkit using the advanced options for permissions where it proceeded to reboot the tablet in bootloader, then the modified boot.img. The folders, with the config files, "files" and "kali-nh" are present in the sdcard/ location but only when the tablet is booted into the modified boot.img. When it boots into xxxxx-dirty kernel, they are not and you cant copy them over the folders either. Probably because theyre already present but stuck only appearing in the modified boot.img.

My question is, is this a bug with lollipop or nethunter on Nexus 7 2013 lte? Ive done the nethunter installation many times for lollipop (nethunter 1.21 and 1.22) and always the same result. Ofcourse it works fine for Kitkat but is there a fix for lollipop?