Thank you. That context helps tremendously. So you're able to successfully read from that folder when defining the "Additional Files", but the publishing process is tripping up on a file in that folder. Are you publishing from the LOCAL console or from a REMOTE console?
My inclination is that this is an issue with accessing the files from the Patch Manager server during the publishing process, and may not be directly related to your package. If so, then this is about product functionality, not custom packaging, and should be (probably will need to be, actually) investigated by support.
One other test you might try... rename the L&H folder to LH, and retry the process. The package won't actually deploy in that condition because of the renamed folder, but it will help to isolate whether the folder name is the issue (I think not), or something else is the cause.