I am getting this stupid error "System cannot find the specified file."

Hm, please attach %temp%\ntlite.log at that moment, never seen that before.
Translated to english, cannot find a file - but which, it gave no context, maybe log will.
 
That seems to be a heavily custom trimmed image.
Anyway, downloaded their example ISO, removed a few components, there was no errors during processing.
It's not recommended to download custom ISOs, not just because of potentially unexpected editing, but also security.
Best is to use NTLite on an official image.
 
I don't trust NTDEV's nano11 script. He doesn't fully support Component-Based Servicing and bypasses permissions on WinSxS before randomly copying folders. Instead of removing components using DISM-based processes for compatibility.

He admits that on the GitHub project page:
The resulting OS is not serviceable. This means you cannot add languages, drivers, or features, and you will not receive Windows Updates. It is intended only for testing, development, or embedded use in VMs where a minimal, static environment is required.
Click to expand...
 
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