If both esp8266 and esp32 folders are present under /Arduino15/packages the upload keeps using the esp32 library when building LittleFS filesystem which causes errors in the FS:
Command Line: /Users/xxxxxx/Library/Arduino15/packages/esp32/tools/mklittlefs/4.0.2-db0513a/mklittlefs -c

When the esp32 folder is removed everything works as intended:
Command Line: /Users/xxxxxx/Library/Arduino15/packages/esp8266/tools/mklittlefs/3.1.0-gcc10.3-e5f9fec/mklittlefs -c