Not sure of the Fix Boot Loop is working zefie in 12518.4, both phones of mine still get stuck if running off the battery only.
If they are hooked to the computer, powered down, sit for a couple of minutes the phones boot right up. I'm trying to think of what would be different when it's hooked up on the UBS? Haven't tried it yet with the regular AC adapter.
Is the default action for that wipe to not display output to the screen, have the screen go black, and then reboot?
I also noticed that when going to wipe dalvik it came up with an error that a partition was missing /dev/block/mmcblk0p2. Does this have something to do with CyanogenMod or the /dalvik-cache to /cache mod?
Here is what Fix Boot Loop attemps to do
1) Wipe /dev/mtd/mtd7 (bootloader cmds, this tells it to boot-recovery, update-radio, or blank for standard boot)
2) Wipe /dev/mtd/mtd8 (lge bootloader cmds, these are LGE cmds used for Factory Reset (FACT_RESET_3 tells it to wipe, FACT_RESET_6 is what it sets to when its done, no idea what that does. CWMA reads mtd8 and passes control to LGE Recovery if we see FACT_RESET_3, which is how we now support true Factory Reset. lol).
3) Reboot.
It will not fix:
Broken boot partition
Broken /system partition
anything else really lol
Thats not to say I'm discarding your issue. No, in fact I'm intrigued by it.
If you can reproduce this, trigger it again, use the Fix Boot Loop option, then when it reloads recovery run these cmds:
adb shell strings /dev/mtd/mtd7
adb shell strings /dev/mtd/mtd8
As for you running LG Factory Reset, this was not tested on CM7. I do not know what part of the reset process rewrites FACT_RESET_3 but it is NOT the bootloader. Even on ThunderROM, nROM or VCRom you need to wait for the system to boot to the "Welcome to LS670" screen before it will disable the flag and let you boot into recovery again. I don't really have a way to reset it manually unless I can somehow intercept the reboot cmd LGE Recovery issues after it wipes.
You are not bricked though but at this point you have to race against time.
When you reboot recovery and Xionia CWMA passes it to LGE Recovery, because it still sees FACT_RESET_3, quicky attempt to run this command: (copy and paste the whole line)
adb shell flash_eraseall /dev/mtd/mtd8; adb reboot recovery
If you are successful you should be able to boot back into recovery.
Then you will have to go back to VCRom, ThundeROM, or nROM because LGE Factory Reset erases provisioning, and we cannot provision in CM7.