Quote from Needrom (Petrofsky):
I found a workaround for this. In the Chinese forums, someone encounter the same issue during intial Cyanogemod setup as well, the trick is to power off the phone, open back cover and remove all sim cards and microsd card, and then turn on phone again. No need to reflash. I had the same issue also but after doing that, I am able to proceed with the setup. Now using it, quite happy as this is the most stable CM Lollipop ported for Z7 max.the previous CM12 v5.0.2 are all crap. Everything works except IR, becoz i have not tested that one yet.
Also, please go to XDA forums and download Gapps Pico for v5.1. The Gapps for v5.0 will no longer work with this Cm12.1.