I know why the error is getting coused... It appears it cannot locate the update. I found the last log file and pasting it here for people that will know how to fix it
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Starting TWRP 2.6.3.0 on Wed May 28 18:05:07 2014
BOARD_HAS_NO_REAL_SDCARD := true
TW_INCLUDE_DUMLOCK := true
I:Internal path defined: '/data/media'
I:External path defined: '/external_sd'
I:Mount: Unable to find partition for path '/data'
RECOVERY_SDCARD_ON_DATA := true
TW_NO_USB_STORAGE := true
Starting the UI...Pixel format: 1080x1920 @ 32bpp
Pixel format: RGBX_8888
framebuffer: fd 3 (1080 x 1920)
=> Linking mtab
=> Processing recovery.fstab
I
rocessing '/boot'
I
rocessing '/cache'
I
rocessing '/data'
I:mount '/data/media' '/sdcard' process ended with RC=0
I:mount '/data/media/0' '/sdcard' process ended with RC=0
I:Backup folder set to '/data/media/0/TWRP/BACKUPS/SH3A5W900247'
I:Settings storage is '/data/media/0'
I
rocessing '/recovery'
I
rocessing '/system'
I
rocessing '/usb-otg'
I:Created '/usb-otg' folder.
Updating partition details...
I
ata backup size is 1884MB, size: 26206MB, used: 8711MB, free: 17649MB, in data/media: 6826MB.
I:Unable to mount '/usb-otg'
I:Actual block device: '', current file system: 'vfat'
I:Unmounting main partitions...
Partition Logs:
/boot | /dev/block/mmcblk0p33 | Size: 16MB
Flags: Can_Be_Backed_Up IsPresent
Primary_Block_Device: /dev/block/mmcblk0p33
Display_Name: Boot
Storage_Name: boot
Backup_Path: /boot
Backup_Name: boot
Backup_Display_Name: Boot
Storage_Path: /boot
Current_File_System: emmc
Fstab_File_System: emmc
Backup_Method: dd
/cache | /dev/block/mmcblk0p36 | Size: 629MB Used: 10MB Free: 619MB Backup Size: 10MB
Flags: Can_Be_Mounted Can_Be_Wiped Can_Be_Backed_Up Wipe_During_Factory_Reset Wipe_Available_in_GUI IsPresent
Primary_Block_Device: /dev/block/mmcblk0p36
Display_Name: Cache
Storage_Name: Cache
Backup_Path: /cache
Backup_Name: cache
Backup_Display_Name: Cache
Storage_Path: /cache
Current_File_System: ext4
Fstab_File_System: ext4
Backup_Method: files
/data | /dev/block/mmcblk0p37 | Size: 26206MB Used: 8711MB Free: 17649MB Backup Size: 1884MB
Flags: Can_Be_Mounted Can_Be_Wiped Can_Be_Backed_Up Wipe_During_Factory_Reset Wipe_Available_in_GUI IsPresent Has_Data_Media Can_Encrypt_Backup Use_Userdata_Encryption Is_Storage Is_Settings_Storage
Symlink_Path: /data/media/0
Symlink_Mount_Point: /sdcard
Primary_Block_Device: /dev/block/mmcblk0p37
Display_Name: Data
Storage_Name: Internal Storage
Backup_Path: /data
Backup_Name: data
Backup_Display_Name: Data
Storage_Path: /data/media/0
Current_File_System: ext4
Fstab_File_System: ext4
Backup_Method: files
/recovery | /dev/block/mmcblk0p34 | Size: 15MB
Flags: Can_Be_Backed_Up IsPresent
Primary_Block_Device: /dev/block/mmcblk0p34
Display_Name: Recovery
Storage_Name: recovery
Backup_Path: /recovery
Backup_Name: recovery
Backup_Display_Name: Recovery
Storage_Path: /recovery
Current_File_System: emmc
Fstab_File_System: emmc
Backup_Method: dd
/system | /dev/block/mmcblk0p35 | Size: 1763MB Used: 1702MB Free: 61MB Backup Size: 1702MB
Flags: Can_Be_Mounted Can_Be_Wiped Can_Be_Backed_Up Wipe_Available_in_GUI IsPresent
Primary_Block_Device: /dev/block/mmcblk0p35
Display_Name: System
Storage_Name: System
Backup_Path: /system
Backup_Name: system
Backup_Display_Name: System
Storage_Path: /system
Current_File_System: ext4
Fstab_File_System: ext4
Backup_Method: files
/usb-otg | | Size: 0MB Used: 0MB Free: 0MB Backup Size: 0MB
Flags: Can_Be_Mounted Can_Be_Wiped Wipe_Available_in_GUI Removable Is_Storage
Primary_Block_Device: /dev/block/sda1
Alternate_Block_Device: /dev/block/sda
Display_Name: USB-OTG
Storage_Name: USB-OTG
Backup_Path: /usb-otg
Backup_Name: usb-otg
Backup_Display_Name: USB-OTG
Storage_Path: /usb-otg
Current_File_System: vfat
Fstab_File_System: vfat
Backup_Method: files
I:Loading package: TWRP (/script/ui.xml)
I:Loading package: TWRP (/data/media/0/TWRP/theme/ui.zip)
I:Loading package: TWRP (/res/ui.xml)
I:Loading resources...
I:Loading variables...
I:Loading pages...
I:Loading page main
I:Loading page main2
I:Loading page install
I:Loading page flash_confirm
I:Loading page flash_zip
I:Loading page flash_done
I:Loading page clear_vars
I:Loading page confirm_action
I:Loading page action_page
I:Loading page singleaction_page
I:Loading page action_complete
I:Loading page filecheck
I:Loading page rebootcheck
I:Loading page wipe
I:Loading page advancedwipe
I:Loading page formatdata
I:Loading page formatdata_confirm
I:Loading page backup
I:Loading page backupname1
I:Loading page backupname2
I:Loading page backupencryption
I:Loading page backupencryption2
I:Loading page checkbackuppassword
I:Loading page backup_run
I:Loading page restore
I:Unable to open '/data/media/0/TWRP/BACKUPS/SH3A5W900247'
I:Loading page restore_read
I:Loading page restore_decrypt
I:Loading page try_restore_decrypt
I:Loading page restore_select
I:Loading page renamebackup
I:Loading page restore_run
I:Loading page selectstorage
I:Loading page mount
I:Loading page usb_mount
I:Loading page usb_umount
I:Loading page reboot
I:Loading page settings
I:Loading page timezone
I:Loading page screen
I:Loading page advanced
I:Loading page partsdcard
I:Loading page htcdumlock
I:Loading page lock
I:Loading page filemanagerlist
I:Loading page filemanageroptions
I:Loading page choosedestinationfolder
I:Loading page filemanagerrenamefile
I:Loading page filemanagerrenamefolder
I:Loading page filemanagerchmod
I:Loading page filemanagerconfirm
I:Loading page filemanageracction
I:Loading page decrypt
I:Loading page trydecrypt
I:Loading page terminalfolder
I:Loading page terminalcommand
I:Loading page sideload
I:Loading page installsu
I:Set page: 'clear_vars'
I:Set page: 'main2'
I:Switching packages (TWRP)
No file contexts for SELinux
E:Cannot load volume /misc!
I:Got arguments from /cache/recovery/command
E:Cannot load volume /misc!
Startup Commands: '--update_package=INTERNALSDCARD:0/Download/OTA_M7_UL_K44_SENSE55_MR_HTC_Europe_4.19.401.11-3.62.401.1_release_356395e7z2lsr0msqontmw.zip' '--locale=en_GB' '--update_info=CxIy@x@xC|HzAxF'ro.boot.pagesize=2048
ro.boot.lb=1
ro.boot.efuse_info=3NSL
ro.boot.baseband=4A.21.3263.04
ro.boot.cid=HTC__032
ro.boot.devicerev=3
ro.boot.batt_poweron=good_battery
ro.boot.carrier=HTC-EastEurope
ro.boot.mid=PN0710000
ro.boot.hasfp=0
ro.boot.keycaps=qwerty
ro.boot.dq=PASS
ro.boot.mode=recovery
ro.boot.serialno=SH3A5W900247
ro.boot.bootloader=1.55.0000
ro.boot.nledhw=0
ro.boot.ddrmid=(0x3)
ro.boot.hardware=m7
ro.serialno=SH3A5W900247
ro.bootmode=recovery
ro.baseband=4A.21.3263.04
ro.bootloader=1.55.0000
ro.hardware=m7
ro.revision=3
ro.emmc=1
ro.boot.emmc=1
ro.factorytest=0
ro.secure=0
ro.allow.mock.location=1
ro.debuggable=1
persist.sys.usb.config=adb
ro.build.id=JZO54K
ro.build.display.id=cm_m7-eng 4.1.2 JZO54K eng.dees_troy.20130912.224111 test-keys
ro.build.version.incremental=eng.dees_troy.20130912.224111
ro.build.version.sdk=16
ro.build.version.codename=REL
ro.build.version.release=4.1.2
ro.build.date=Thu Sep 12 22:41:26 UTC 2013
ro.build.date.utc=0
ro.build.type=eng
ro.build.user=dees_troy
ro.build.host=ded1.ktechnology.net
ro.build.tags=test-keys
ro.product.model=M7
ro.product.brand=htc
ro.product.name=cm_m7
ro.product.device=m7
ro.product.board=m7
ro.product.cpu.abi=armeabi-v7a
ro.product.cpu.abi2=armeabi
ro.product.manufacturer=HTC
ro.product.locale.language=en
ro.product.locale.region=US
ro.wifi.channels=
ro.board.platform=msm8960
ro.build.product=m7
ro.build.description=cm_m7-eng 4.1.2 JZO54K eng.dees_troy.20130912.224111 test-keys
ro.build.fingerprint=htc/cm_m7/m7:4.1.2/JZO54K/eng.dees_troy.20130912.224111:eng/test-keys
ro.build.characteristics=default
ro.cm.device=m7
rild.libpath=/system/lib/libril-qc-qmi-1.so
rild.libargs=-d /dev/smd0
persist.rild.nitz_plmn=
persist.rild.nitz_long_ons_0=
persist.rild.nitz_long_ons_1=
persist.rild.nitz_long_ons_2=
persist.rild.nitz_long_ons_3=
persist.rild.nitz_short_ons_0=
persist.rild.nitz_short_ons_1=
persist.rild.nitz_short_ons_2=
persist.rild.nitz_short_ons_3=
ril.subscription.types=NV,RUIM
DEVICE_PROVISIONED=1
debug.sf.hw=1
debug.egl.hw=1
debug.composition.type=gpu
debug.enabletr=true
ro.hwui.renderer.disable_opaque=true
ro.sf.lcd_density=480
debug.mdpcomp.maxlayer=3
debug.egl.buffcount=4
dalvik.vm.heapsize=384m
dalvik.vm.heapgrowthlimit=192m
dev.pm.dyn_samplingrate=1
persist.cne.UseCne=vendor
persist.cne.UseSwim=false
persist.cne.bat.range.low.med=30
persist.cne.bat.range.med.high=60
persist.cne.loc.policy.op=/system/etc/OperatorPolicy.xml
persist.cne.loc.policy.user=/system/etc/UserPolicy.xml
persist.cne.bwbased.rat.sel=false
persist.cne.snsr.based.rat.mgt=false
persist.cne.bat.based.rat.mgt=false
persist.cne.rat.acq.time.out=30000
persist.cne.rat.acq.retry.tout=0
persist.cne.sync.swim.mode=false
ro.hdmi.enable=true
lpa.decode=false
tunnel.decode=false
lpa.use-stagefright=true
lpa.releaselock=true
media.stagefright.enable-player=true
media.stagefright.enable-http=true
media.stagefright.enable-aac=true
media.stagefright.enable-qcp=true
media.stagefright.enable-fma2dp=true
media.stagefright.enable-scan=true
mmp.enable.3g2=true
ro.use_data_netmgrd=true
persist.timed.enable=true
persist.audio.fluence.mode=endfire
persist.audio.vr.enable=false
persist.audio.handset.mic=digital
persist.htc.audio.pcm.channels=2
af.resampler.quality=255
htc.audio.global.state=0
htc.audio.global.profile=0
htc.audio.q6.topology=0
htc.audio.global.speaker=1
ro.opengles.version=131072
persist.gps.qmienabled=true
ro.qualcomm.cabl=0
ro.ril.transmitpower=true
ro.baseband.arch=mdm
ro.telephony.default_network=9
persist.fuse_sdcard=true
ro.product.bluetooth=4.0
ro.product.display_resolution=4.7 inch 1080p resolution
ro.product.main_camera=4M
ro.product.front_camera=2.1M
ro.product.processor=Quadcore
ro.product.ram=2GB
ro.product.wifi=802.11 a/b/g/n
wifi.interface=wlan0
wifi.supplicant_scan_interval=15
wifi.softap.interface=wlan0
wifi.softapconcurrent.interface=wl0.1
persist.wifi.v6=true
persist.wifi.v6.rs.count=5
persist.wifi.v6.rs.timeout=5
service.brcm.bt.activation=0
service.brcm.bt.srv_active=0
service.brcm.bt.hcid_active=0
service.brcm.bt.btld=0
service.brcm.bt.btld_pid=0
service.brcm.bt.avrcp_pass_thru=0
service.brcm.bt.avrcp_toggle=1
service.brcm.bt.local_name=
service.brcm.bt.4335hwerrwar=1
service.brcm.bt.TRC_HTCSDBG=1
ro.product.hwreset=1
ro.product.hwreset.timer1=8
ro.product.hwreset.timer2=11
ro.usb_host=1
persist.preload.common=1
persist.sys.htc.ui.hw=1
persist.htc.multicore.timeout=1500
persist.htc.multicore.home=800
ro.carrier=unknown
ro.config.notification_sound=OnTheHunt.ogg
ro.config.alarm_alert=Alarm_Classic.ogg
drm.service.enabled=true
ro.setupwizard.mode=OPTIONAL
ro.com.google.gmsversion=4.1_r4
ro.service.dpsvr.enabled=true
ro.vendor.extension_library=/system/lib/libqc-opt.so
dalvik.vm.lockprof.threshold=500
net.bt.name=Android
net.change=net.bt.name
dalvik.vm.stack-trace-file=/data/anr/traces.txt
ro.rommanager.developerid=cyanogenmod
keyguard.no_require_sim=true
ro.url.legal=http://www.google.com/intl/%s/mobile/android/basic/phone-legal.html
ro.url.legal.android_privacy=http://www.google.com/intl/%s/mobile/android/basic/privacy.html
ro.com.google.clientidbase=android-google
ro.com.android.wifi-watchlist=GoogleGuest
ro.setupwizard.enterprise_mode=1
ro.com.android.dateformat=MM-dd-yyyy
ro.com.android.dataroaming=false
ro.cm.version=10-20130912-UNOFFICIAL-m7
ro.modversion=10-20130912-UNOFFICIAL-m7
ro.config.ringtone=CyanTone.ogg
ro.ril.hsxpa=1
ro.ril.gprsclass=10
ro.adb.qemud=1
ro.kernel.android.checkjni=1
init.svc.ueventd=running
init.svc.choice_fn=stopped
service.adb.root=1
init.svc.adbd=running
ro.9kramdump=0
init.svc.recovery=running
I:Inserting 'install =CxIy@x@xC|HzAxF'
I:Copying file /cache/recovery/log to /cache/recovery/last_log
I:Attempt to load settings from settings file...
I:Loading settings from '/data/media/0/TWRP/.twrps'.
I:Mount: Unable to find partition for path '/external_sd'
I:Backup folder set to '/data/media/0/TWRP/BACKUPS/SH3A5W900247'
I:Copying file /etc/recovery.fstab to /cache/recovery/recovery.fstab
I:Version number saved to '/cache/recovery/.version'
I:Mount: Unable to find partition for path '/external_sd'
I:Switching packages (TWRP)
I:Set page: 'action_page'
Processing AOSP recovery commands...
I:command is: 'install' and I:value is: '=CxIy@x@xC|HzAxF'
I:Unable to mount '/usb-otg'
I:Actual block device: '', current file system: 'vfat'
I:Unable to mount '/usb-otg'
I:Actual block device: '', current file system: 'vfat'
I:Full zip path: '/data/media/0/=CxIy@x@xC|HzAxF'
I:Zip file not found on external storage, trying internal...
I:Backup folder set to '/data/media/0/TWRP/BACKUPS/SH3A5W900247'
I:Full zip path: '/data/media/0/=CxIy@x@xC|HzAxF'
Unable to locate zip file '/data/media/0/=CxIy@x@xC|HzAxF'.
E:Error installing zip file '/data/media/0/=CxIy@x@xC|HzAxF'
Done processing script file
I:Set page: 'main'
I:Set page: 'clear_vars'
I:Set page: 'main2'
I:Switching packages (TWRP)
I:Set page: 'settings'
I:Set page: 'main'
I:Set page: 'clear_vars'
I:Set page: 'main2'
I:Set page: 'settings'
I:Set page: 'main'
I:Set page: 'clear_vars'
I:Set page: 'main2'
I:Set page: 'install'
I:Set page: 'main'
I:Set page: 'clear_vars'
I:Set page: 'main2'
I:Set page: 'install'
I:Set page: 'main'
I:Set page: 'clear_vars'
I:Set page: 'main2'
I:Set page: 'settings'
I:Set page: 'main'
I:Set page: 'clear_vars'
I:Set page: 'main2'
I:Set page: 'install'
I:Set page: 'main'
I:Set page: 'clear_vars'
I:Set page: 'main2'
I:Set page: 'install'
I:Set page: 'main'
I:Set page: 'clear_vars'
I:Set page: 'main2'
I:Set page: 'install'
I:Set page: 'main'
I:Set page: 'clear_vars'
I:Set page: 'main2'
I:Set page: 'reboot'
I:Set page: 'rebootcheck'
I:Root permissions appear to be lost... fixing. (This will always happen on 4.3+ ROMs with SELinux.
---
Hope this helps