Problem building v1.96 + filesystem to ESP8266

Beyond what I posted earlier, here is a web IDE console output whenever I upload a code:

My code:

var wifi = require("Wifi");
wifi.setHostname("Espruino");
wifi.stopAP();
wifi.setIP({ip:"192.168.1.20",gw:"192.168.0.1",netmask:"255.255.255.0"},function(err){});
wifi.connect("SSID",{password:"PASS"},function(err){
    console.log("connected? err=",err,"info=", wifi.getIP());
  
    wifi.save();
});

SPI1.setup({mosi:D7,miso:D6,sck:D5});
E.connectSDCard(SPI1,D8);

var files = require('fs').readdirSync();
for (var i in files)
  console.log("Found File" + files[i]);

Console Output:

>
 ____                 _
|  __|___ ___ ___ _ _|_|___ ___
|  __|_ -| . |  _| | | |   | . |
|____|___|  _|_| |___|_|_|_|___|
         |_| espruino.com
 1v96 (c) 2017 G.Williams
Espruino is Open Source. Our work is supported
only by sales of official boards and donations:
http://espruino.com/Donate
Flash map 4MB:512/512, manuf 0x20 chip 0x4016
>ASSERT(jsvGetLocks(var)>0) FAILED AT src/jsvar.c:674
  #1[r1,l2] Object {
    #2[r1,l2] Name String [1 blocks] "\xFF"      #3[r1,l2] Object {
        #6[r1,l2] Name String [2 blocks] "timers"          #8[r2,l1] Array(0) [ ]
        #9[r1,l2] Name String [2 blocks] "watches"          #11[r2,l1] Array(0) [ ]
        #13[r1,l2] Name String [1 blocks] "net"          #14[r1,l2] String [1 blocks] "\x04\x00\x00\x00\x00\xFF\xFF\xFF"
        #21[r1,l2] Name String [2 blocks] "modules"          #23[r1,l1] Object {
            #25[r1,l2] Name String [1 blocks] "Wifi"              #24[r5,l3] ...
 
          }
        #15[r1,l2] Name String [2 blocks] "history"          #26[r1,l1] Array(3) [
            #27[r1,l2] Name Integer 0              #17[r1,l1] String [3 blocks] "var wifi = require(\"Wifi\");"
            #29[r1,l2] Name Integer 1              #30[r1,l1] String [3 blocks] "wifi.setHostname(\"Espruino\");"
            #28[r1,l2] Name Integer 2              #34[r1,l1] String [2 blocks] "wifi.stopAP();"
          ]
      }
    #16[r1,l2] Name String [1 blocks] "wifi"      #24[r5,l3] NativeFunction 0x4021bc6c (0) { }
  }
---console end---
 ets Jan  8 2013,rst cause:2, boot mode:(3,6)
load 0x40100000, len 2408, room 16
tail 8
chksum 0xe5
load 0x3ffe8000, len 776, room 0
tail 8
chksum 0x84
load 0x3ffe8310, len 632, room 0
tail 8
chksum 0xd8
csum 0xd8
2nd boot version : 1.6
  SPI Speed      : 80MHz
  SPI Mode       : QIO
  SPI Flash Size & Map: 32Mbit(512KB+512KB)
jump to run user1 @ 1000
sp 0x3ffffcb0
epc1=0x40001800, epc2=0x00000000, epc3=0x00000000, excvaddr=0xffffffef, depc=0x00000000
Fatal exception (28):
epc1=0x40001800, epc2=0x00000000, epc3=0x00000000, excvaddr=0xffffffef, depc=0x00000000
Fatal exception (28):
epc1=0x40001800, epc2=0x00000000, epc3=0x00000000, excvaddr=0xffffffef, depc=0x00000000
Fatal exception (28):
...

this last 2 lines repeat indefinetly, no matter if I hard reset the device. The only way out of this loop is to erase the flash and reupload the firmware