@Dominik Wójt after spending more time trying to configure it, here are a couple of follow-up observations.
First, localization won't work during setup. Even if you pick your geography or set the time zone manually, the system time won't adjust. Without proper time, the browser won't work. You need to install chrony, add google's time server and then restart chrony. With a bit of play - the time will adjust.
But even after this, the browser still won't work. If will ping any specific ip but won't ping any websited. To fix this, you'd need to configure new DNS server. Change it to 8.8.8.8 and 8.8.4.4. That would fix the problem and you will be able to get online.
With regards to wifi, it will see all the 2.4Ghz wifi networks, but it won't take the password. Tried it different ways including setting configuration manually in armbian system settings. No idea what's causing it.
The system is quite slow. It freezes and glitches. Youtube will work as a slide show. However, this is all while running it from a USB drive, which may be the reason for issues.
The key questions at this point: what do I need to do with the files on the USB drive after first boot, so that I am back to this OS and no undroid upon power loss or reboot. The first time I flashed it and then rebuted, it would completely ignore it NOR boot installation.
Also, did you try copying it into nand memory via armbian settings menu or otherwise? Is this reversible?