[Magisk] ExtremeMOD:
Apps don't appear in the drawer - Android build 23, 8227L car head unit

I've been at this all day today and after going through hours of information, I didn't manage to find the answer or a similar problem described.

I have installed the latest Magisk on my unbranded Android Head Unit (Mediatek based SOC, 8227L, YT9217B model) however it doesn't run any apps installed through Magisk. Here is the log:

--------- beginning of main

09-12 16:31:35.055 155 155 I Magisk : Magisk 20.4(20400) daemon started

09-12 16:31:35.059 155 155 I Magisk : * Device API level: 23

09-12 16:31:35.100 155 156 I Magisk : ** post-fs-data mode running

09-12 16:31:35.104 155 156 I Magisk : * Initializing Magisk environment

09-12 16:31:35.175 155 156 I Magisk : * Mounting mirrors

09-12 16:31:35.176 155 156 E Magisk : mount /sbin/.magisk/block/system->/sbin/.magisk/mirror/system failed with 16: Device or resource busy

09-12 16:31:35.176 155 156 I Magisk : mount: /sbin/.magisk/mirror/system

09-12 16:31:35.176 155 156 I Magisk : mount: /sbin/.magisk/mirror/data

09-12 16:31:35.177 155 156 I Magisk : link: /sbin/.magisk/mirror/vendor

09-12 16:31:35.177 155 156 I Magisk : * Setting up internal busybox

09-12 16:31:35.227 155 156 I Magisk : * Running post-fs-data.d scripts

09-12 16:31:35.307 155 156 I Magisk : * Running module post-fs-data scripts

09-12 16:31:35.307 155 156 I Magisk : riru-core: exec [post-fs-data.sh]

09-12 16:31:35.363 155 156 I Magisk : riru_edxposed: exec [post-fs-data.sh]

09-12 16:31:39.675 155 156 I Magisk : * Loading modules

09-12 16:31:39.675 155 156 I Magisk : busybox-ndk: constructing magic mount structure

09-12 16:31:39.686 155 156 I Magisk : riru-core: constructing magic mount structure

09-12 16:31:39.686 155 156 I Magisk : riru_edxposed: loading [system.prop]

09-12 16:31:39.689 155 156 I Magisk : riru_edxposed: constructing magic mount structure

09-12 16:31:39.691 155 156 E Magisk : opendir: /sbin/.magisk/mirror/system/xbin failed with 2: No such file or directory

09-12 16:31:39.691 155 156 E Magisk : opendir: /sbin/.magisk/mirror/system/lib failed with 2: No such file or directory

09-12 16:31:39.691 155 156 E Magisk : opendir: /sbin/.magisk/mirror/system/framework failed with 2: No such file or directory

09-12 16:31:39.691 155 156 I Magisk : bind_mount: /system/bin/app_process32

--------- beginning of system

09-12 17:31:41.309 155 284 I Magisk : ** late_start service mode running

09-12 17:31:41.310 155 284 I Magisk : * Running service.d scripts

09-12 17:31:41.319 155 284 I Magisk : * Running module service scripts

09-12 17:32:04.903 155 1183 I Magisk : ** boot_complete triggered

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I have TWRP version 3.0.2-0 (unable to upgrade to latest successfully, it just stops working) and migrated from SuperSU to Magisk through TWRP Recovery, properly removing SuperSU before installing Magisk. I tried to install apps both though Recovery and through Magisk - same outcome. It looks like all the apps are bound to same error?

My device (car head unit, no physical buttons, touch screen, 7" Double DIN):

Model: AC8227L

Android: YT917B_00002_V004_20200306

Chipset: MediaTek MT3367

RAM: 1 Gb

FLASH: 16 Gb

Kernel: 3.18.22 gangli@zx-PowerEdge-R730 #6 (March 2020)

MCU: 3.1 (8227L)