You had KSM installed. Please remove it first doing a full software reset:
https://help.kobo.com/hc/en-us/artic...HD-or-Kobo-Nia
Then setup your kobo.
Then install a new launcher. Please don't choose a method that you don't know how to follow. When in doubt use
https://github.com/koreader/koreader...llation-method
The device will reboot itself after the update. After nickel is launched go to your library, locate the KO image and press it.
You'll need to wait a few seconds in the first boot before KFMon is able to launch KOReader using the image (it is a failsafe mechanism to prevent loops).