This is an annoying "bug" in the Level1 distribution when using the script file for creating new disks. If you know what you are doing, it is trivial to fix. However, it is inconsistent with our distribution of Level2.
By default, the Level1 shell is shell21 rather than shellplus. This is the opposite of the Level2 release. The script file uses variables and requires shellplus and will not run with shell21. The user just needs to rename the cmds/shell entries but needs to realize this is necessary.
Either the make file should be changed to use shellplus rather than shell21 or there should be a readme file in the script directory explaining the need to use the other shell.