The opkg update command failed with code 7

Based on the first item, Operation not permitted, I might suspect IPv6 related problem, where you have IPv6 DNS working, but no actual IPv6 connectivity. The default lightweight wget "uclient-fetch" has trouble with that. Could be solved by installing full GNU wget-ssl from USB stick. That package has better fallback from IPv6 to IPv4.

Other possibility is missing / misconfigured DNS and gateway. (based on wget error 4, check connectivity)