Are we sure about @13's recommendation not to wipe the system? Does that not just install files over any already there? So maybe files that overwrite others work fine, but other cruft is left behind, and that's why you don't have enough space?
Although, that is a bit of a small partition, so he may very well be spot on. It's been years since I've done much with ROMs, and so much of what you find is anecdotal and practically ritual (I.e. my thing with update1.zip/update2.zip just so I don't have to spout out a bunch of odd filenames for my girlfriend to parse.)
I'd suggest wiping everything and trying again. If it doesn't work, drop to the smaller package and manually install TalkBack. I'd then look for something to link installed apps to the Play Store so you'd automatically get TB updates. I know Titanium Backup has that ability somewhere in its long overflow menu. I think it's called Market Doctor or Market Linking.
Also, make sure you don't need a newer baseband, radio, or whatever Lineage calls them (I've seen both terms.) Those are generally shipped with official software updates, but I'm not sure they're part of Lineage. I've occasionally gotten burned by upgrading my ROM but not the baseband, then things get into an unbootable state as you've described.
Wish this wasn't so fucking wild west. I want to buy a phone and install whatever OS I like on it, just as I do with my PC. While I'm at it I also want a unicorn... I suspect PostmarketOS/Pinephones aren't going to be accessible to us for a long while.