Issue is due to the fact that lineage 14.1 bullhead nightlies are based on the 7.1.2 N2G47F (Apr 2017) monthly update from google.
More explanations in xda-developers.
This assumes:
- you already know a bit about flashing you android device and you already installed TWRP.
- you already have adb/fastbootinstalled and you know a bit about it
- you are on macOS (I give some terminal command from macOS)
Download from official Nexus 5x N2G47F image
In case link is broken find it yourself:
- https://developers.google.com/android/images
- search N2G47F(CTRL+F - CTRL+V)
In terminal, check downloaded zip checksum:
`shasum -a 256 bullhead-n2g47f-factory-f5d53a67.zipit should be: f5d53a67662d1b4c2b2325813d823fc49ad9fb4a5b5361e91c3aff00157c1ddf  bullhead-n2g47f-factory-f5d53a67.zip.
Then enter extracted directory:
cd bullhead-n2g47fThen enter extracted directory:
cd image-bullhead-n2g47fYou can copy it to sdcard
- Manually
- or by adb:adb push vendor.img /sdcard 
- Manually- by holding buttons: power + volume down,
 
- by holding buttons: 
- by adb:adb reboot bootloader 
In TWRP:
install image: vendor.img as vendor partition (check vendor when asked)
We just fixed the origin of the error message but your android is not fully updated.
Next steps will just take less than a minute.
For radio and bootloader we will use fastboot (as suggested in xda-developers).
- Manually- by holding buttons: power + volume up + volume down,
 
- by holding buttons: 
- by adb:adb reboot bootloader 
cd image-bullhead-n2g47fYou may be in the bootloader here before going on.
fastboot flash bootloader bootloader-bullhead-bhz11l.img
fastboot flash radio radio-bullhead-m8994f-2.6.37.2.21.img