I once experienced a similar kernel panic, but I just had to reflash the micro SD card and try again. Then it worked without issues.

They run ancient versions of Windows never updated by the hardware manufacturer. So, they must be on their own, firewalled, networks in use. This is what IoT is going to bring into every home. From the not-updated firewall in the router? See, that's why we need updates for "old" PI 1s for years to ...

Are you actually using your Pi 1 as a desktop? Anything connected to the net needs updates. My Ri 1 is running as low volume non-GUI backup file server. Others use them as music server, printer servers, weather stations and so on. All with connectivity. Five years of support from now must be minimu...

As already said you eventually end up in the same place beefing up Lite or stripping down Default.

To see how far you have come, run:
dpkg --get-selections
But make some coffee before analysing output.

You might like "dpkg --set-selections" as well. See "man dpkg".