From what I remember, the stock recovery expects there to be stuff in cache, so you have to go through one normal boot cycle before cache is populated and the stock recovery will work fully (and you were never able to do this). So, you are not the first person to see that error in stock recovery.
It is too late now (you have new phone), but if I were you I'd do the KP500/LG update again, possibly with a different baseband version if another try with V9 borks.
Also, when you were able to boot into stock recovery, you could then have connected with adb shell, rooted your phone and flashed a custom recovery.
Just my thoughts, I know they're too late but maybe they'll help somebody. sfhub, thanks for this guide!