We haven't specifically tested the DAKboard OS on a Pi Zero, and generally don't recommend it due to it's limited CPU/RAM. However, one user did mention that for some reason, the Pi Zero takes a long time for the wifi to start up. Due to this, the OS assumes it's offline and starts the hotspot/setup mode.
To get around this, try increasing the time in this file:
Find the line that contains OnBootSec=30 and change that to OnBootSec=60 or higher if needed.
Save your changes and restart the Pi. When it boots back up, it will wait the specified time before testing for connectivity.