I posted on the Telegram group. The SD Card appears not to be mounted until you enter your screen lock, then you see the persistent notification about the SD Card. If you type in 'sm set-force-adoptable true' in terminal or adb, you will then get the checking sd card followed by the option to setup your sd card as either Portable or internal storage. Be aware if you click internal your SD Card will be wiped so make a backup. If you choose Portable, I no longer get the persistent notification that I have to clear of the status bar. You will still get the Checking SD Card message which somehow is tied to the SD Card not mounting immediately when the phone boots and only does after unlocking the phone.
Here is more info about this bug that the kite device also has the issue to hopefully help answer what could cause this issue: https://gitlab.com/LineageOS/issues/android/issues/496
I agree that this ROM is awesome and glad HWC is finally fixed. The only main issue for me is Google Voice Match is greyed out which a few months ago was fixed on other AOSP ROMs so the Google Libs are probably not added to this version.