Problems with extroot

I followed the directions for exroot here and below in the page, this offer, which I did but after opkg will not update, until I changed it back to the original. I thought if someone else could replicate this, then changes to the wiki might be necessary.

Extras
Preserving opkg lists

Save opkg lists to /usr/lib/opkg/lists stored on the extroot, instead of in RAM. This makes package lists survive reboot and saves some RAM.
Web interface instructions

    Navigate to LuCI → System → Software → Configuration to change /var/opkg-lists to /usr/lib/opkg/lists.
    Navigate to LuCI → System → Software → Actions → Update lists to do an initial build of the package list onto extroot.

Command-line instructions

sed -i -e "/^lists_dir\s/s:/var/opkg-lists$:/usr/lib/opkg/lists:" /etc/opkg.conf
opkg update


Does the folder exist? ls -la /usr/lib/opkg/lists/
I tried it and it worked fine:

root@magiatiko:[~]#la /usr/lib/opkg/lists/
drwxr-xr-x    2 root     root        4.0K Jan 13 21:58 .
drwxr-xr-x    4 root     root        4.0K Oct 24 11:01 ..
-rw-r--r--    1 root     root       59.8K Jan 13 03:44 openwrt_base
-rw-r--r--    1 root     root         142 Jan 13 03:47 openwrt_base.sig
-rw-r--r--    1 root     root       88.0K Oct 26 04:47 openwrt_core
-rw-r--r--    1 root     root         142 Oct 26 04:51 openwrt_core.sig
-rw-r--r--    1 root     root      175.4K Jan 13 03:44 openwrt_luci
-rw-r--r--    1 root     root         142 Jan 13 03:47 openwrt_luci.sig
-rw-r--r--    1 root     root      447.7K Jan 13 03:47 openwrt_packages
-rw-r--r--    1 root     root         142 Jan 13 03:47 openwrt_packages.sig
-rw-r--r--    1 root     root       12.0K Jan 13 03:47 openwrt_routing
-rw-r--r--    1 root     root         142 Jan 13 03:47 openwrt_routing.sig
-rw-r--r--    1 root     root       69.3K Jan 13 03:47 openwrt_telephony
-rw-r--r--    1 root     root         142 Jan 13 03:47 openwrt_telephony.sig
-rw-r--r--    1 root     root        2.9K Jan  1 08:12 stangri_repo
-rw-r--r--    1 root     root         151 Jan  1 08:12 stangri_repo.sig

@trendy thanks. I drilled down to the folder and this is what I found. Does it make a difference that I currently have overlay on a usb stick?
Screenshot 2022-01-13 at 22.25.03

No, it doesn't matter, although you want to be careful not to write too many times and wear out the flash.
Run the following and paste here the output
sed -i -e "/^lists_dir\s/s:/var/opkg-lists$:/usr/lib/opkg/lists:" /etc/opkg.conf; opkg update; ls -la /usr/lib/opkg/lists/

Downloading https://downloads.openwrt.org/releases/21.02.1/targets/lantiq/xrx200/packages/Packages.gz
Updated list of available packages in /usr/lib/opkg/lists/openwrt_core
Downloading https://downloads.openwrt.org/releases/21.02.1/targets/lantiq/xrx200/packages/Packages.sig
Signature check passed.
Downloading https://downloads.openwrt.org/releases/21.02.1/packages/mips_24kc/base/Packages.gz
Updated list of available packages in /usr/lib/opkg/lists/openwrt_base
Downloading https://downloads.openwrt.org/releases/21.02.1/packages/mips_24kc/base/Packages.sig
Signature check passed.
Downloading https://downloads.openwrt.org/releases/21.02.1/packages/mips_24kc/luci/Packages.gz
Updated list of available packages in /usr/lib/opkg/lists/openwrt_luci
Downloading https://downloads.openwrt.org/releases/21.02.1/packages/mips_24kc/luci/Packages.sig
Signature check passed.
Downloading https://downloads.openwrt.org/releases/21.02.1/packages/mips_24kc/packages/Packages.gz
Updated list of available packages in /usr/lib/opkg/lists/openwrt_packages
Downloading https://downloads.openwrt.org/releases/21.02.1/packages/mips_24kc/packages/Packages.sig
Signature check passed.
Downloading https://downloads.openwrt.org/releases/21.02.1/packages/mips_24kc/routing/Packages.gz
Updated list of available packages in /usr/lib/opkg/lists/openwrt_routing
Downloading https://downloads.openwrt.org/releases/21.02.1/packages/mips_24kc/routing/Packages.sig
Signature check passed.
Downloading https://downloads.openwrt.org/releases/21.02.1/packages/mips_24kc/telephony/Packages.gz
Updated list of available packages in /usr/lib/opkg/lists/openwrt_telephony
Downloading https://downloads.openwrt.org/releases/21.02.1/packages/mips_24kc/telephony/Packages.sig
Signature check passed.
drwxr-xr-x    1 root     root          4096 Jan 13 21:37 .
drwxr-xr-x    1 root     root          4096 Jan 13 17:23 ..
-rw-r--r--    1 root     root         61025 Jan 13 21:37 openwrt_base
-rw-r--r--    1 root     root           142 Jan 13 21:37 openwrt_base.sig
-rw-r--r--    1 root     root         84398 Jan 13 21:37 openwrt_core
-rw-r--r--    1 root     root           142 Jan 13 21:37 openwrt_core.sig
-rw-r--r--    1 root     root        177166 Jan 13 21:37 openwrt_luci
-rw-r--r--    1 root     root           142 Jan 13 21:37 openwrt_luci.sig
-rw-r--r--    1 root     root        454017 Jan 13 21:37 openwrt_packages
-rw-r--r--    1 root     root           142 Jan 13 21:37 openwrt_packages.sig
-rw-r--r--    1 root     root         12240 Jan 13 21:37 openwrt_routing
-rw-r--r--    1 root     root           142 Jan 13 21:37 openwrt_routing.sig
-rw-r--r--    1 root     root         71545 Jan 13 21:37 openwrt_telephony
-rw-r--r--    1 root     root           142 Jan 13 21:37 openwrt_telephony.sig

So where is the problem?

Thanks a lot. But this is what I said earlier.
"I followed the directions for exroot here and below in the page, this offer, which I did but after opkg will not update, until I changed it back to the original."

But as you can see it worked fine for you as well.