Hello
I have here a TL-WA701ND, and I tried to flash openWRT on it. I connected it via tftp to a computer, and also via serial port and screen.
I used this commands:
flashing looks good. no failure. But after reboot there was a failure:
kernel panic - not syncing
and it boots again, and again, and again
I tried
openwrt-18.06.0-ar71xx-tiny-tl-wa701nd-v1-squashfs-factory.bin
and
lede-17.01.7-ar71xx-generic-tl-wa701nd-v1-squashfs-factory.bin
I'am not sure if I used the right address. I'am able to get acces to the failsafemode. Is there a possibility to do some checks in failsafemode? Could it be that the memory is "defect"?
This device does not have enough flash or RAM to do much useful with OpenWrt. Running old versions is not recommended due to security issues.
To answer your question though, in failsafe mode the writeable part of the flash, (/overlay partition) is not mounted until you run mount_root.
You may want to run sysupgrade -n and reflash with the sysupgrade file to be sure you have a good install in flash. When writing directly to flash, the sysupgrade file is used, not factory. I'm not sure how it boots at all after what you did.