I have now more confusion - file /home/etc/event.d/rcS-late was NOT edited by script.

I don't know - why. Your copy of that file was successfully converted by my script. The possible reason - transfer unpacked script files via FTP from Windows (which may change CRLF) or so.

I attach /home/etc/event.d/rcS-late, please replace it after M32GBinit.sh and re-try if you have time.