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This has nothing to do with progressive gear? In the testing I did in the general support thread I said I tested if the issue is caused by that setting because I remember in an older version it caused spawns and AI to break, I believe that was when SPT was first made available for 12.12. Either way, the airdrop bug was still there with progressive gear on or not.
Fin did reply it has something to do with the breakup waves settings, which is strange because I don't use that setting and is set to false. Maybe it just broke in general.
As for the error, I tested your theory, you are right. If the only mod in the folder is FAIT then there is no error.
So I tried adding one mod at a time and noticed there are no errors until I added Mighty_Condor's AXMC mod.
I also checked the description of the mod, seems like they are aware of incompatibilities with FAIT and suggest to add the gun to the loadout blacklist. Now I'm not sure if this is something Fin can fix or not, but I'll try their suggestion to add it to the blacklist.
I however did not have this conflict on the previous version of FAIT.
Ah screw it, I'll just remove the mod until the conflict with FAIT is resolved.