This is a known issue when upgrading from 007, MXIII had a non standard partition on 007 which kszaq corrected on 008.
Knowing so the way i upgraded was by flashing the image onto a usb key and booting LE via toothpick, then used installtointernal, you may need to do this twice.
Make sure to use the usb port next to the SD card , LE should boot from SD as well but USB was easier for me.
Tip: I had the recovery image on a SD card so it kept booting into recovery instead of LE when booting via toothpick. So make a fresh sd/usb and remove any other storage devices and make sure you dont have the Android dtb or recovery on the LE SD/USB