[Nexus 4 Android Development] TigTex:
Fair enough.

This is the error message that you see when installing LATEST opengapps pico. I see that you are installing a version from 2 years ago, is it a requirement? There's no information about that on 1st post.

Oficial TWRP 3.4.0 no longer fails to install this rom. Probably this is because the system clock was wrong (phone has been disabled for almost 2 years).

GAPPS log

# Begin Open GApps Install Log
------------------------------------------------------------------
ROM Android version | 8.1.0
ROM Build ID | lineage_mako-userdebug 8.1.0 OPM7.181205.001 45da97e2b7
ROM Version increment | 45da97e2b7
ROM SDK version | 27
ROM/Recovery modversion | 15.1-20200810-UNOFFICIAL-mako
Device Recovery | TWRP 3.4.0-0-349ea555
Device Name | mako
Device Model | Nexus 4
Device Type | phone
Device CPU | armeabi-v7a,armeabi
Device A/B-partitions | false
Installer Platform | arm
ROM Platform | arm
Display Density Used | 320
Install Type | Clean[Data Wiped]
Google Camera already installed | Clean
VRMode Compatible | false
Google Camera Compatible | true
New Camera API Compatible | false
Google Pixel Features | false
Current GApps Version | No GApps Installed
Google Camera version | Legacy
Installing GApps Zipfile | /sdcard/TWRP/open_gapps-arm-8.1-pico-20200825.zip
Installing GApps Version | 20200825
Installing GApps Type | pico
Config Type |
Using gapps-config | Not Used
Remove Stock/AOSP Browser | false[NO_Chrome]
Remove Stock/AOSP Camera | false[NO_CameraGoogle]
Remove Stock/AOSP Dialer | false[NO_DialerGoogle]
Remove Stock/AOSP Email | false[NO_Gmail]
Remove Stock/AOSP Gallery | false[NO_Photos]
Remove Stock/AOSP Launcher | false[NO_GoogleNow/PixelLauncher]
Remove Stock/AOSP MMS App | false[NO_Messenger]
Remove Stock/AOSP Pico TTS | false[default]
Ignore Google Contacts | false
Ignore Google Dialer | true[NoRemove]
Ignore Google Keyboard | false
Ignore Google Package Installer | false
Ignore Google NFC Tag | false
Ignore Google WebView | false
Total System Size (KB) | 847656
Used System Space (KB) | 704500
Current Free Space (KB) | 143156
Additional Space Required (KB) | 4188 << See Calculations Below
------------------------------------------------------------------
# End Open GApps Install Log

INSTALLATION FAILURE: Your device does not have sufficient space available in
the system partition to install this GApps package as currently configured.
You will need to switch to a smaller GApps package or use gapps-config to
reduce the installed size.

NOTE: The Stock/AOSP Dialer is not available on your
ROM (anymore), the Google equivalent will not be removed.
# Begin GApps Size Calculations
------------------------------------------------------------------
TYPE | DESCRIPTION | SIZE | TOTAL
| Current Free Space | 143156 | 143156
Remove | Existing GApps | + 0 | 143156
Remove | Obsolete Files | + 0 | 143156
Remove | cmsetupwizard | + 0 | 143156
Remove | extservicesstock | + 16 | 143172
Remove | extsharedstock | + 12 | 143184
Remove | packageinstallerstock | + 5916 | 149100
Remove | provision | + 0 | 149100
Install | Core | - 100360 | 48740
Install | calsync | - 2544 | 46196
Install | dialerframework | - 12 | 46184
Install | googletts | - 35460 | 10724
Install | packageinstallergoogle | - 5696 | 5028
| Buffer Space | - 9216 | -4188
------------------------------------------------------------------
Additional Space Required | 4188
------------------------------------------------------------------

# End GApps Size Calculations

# Begin User's gapps-config

# End User's gapps-config