Why did you re-install the felix file install bundle in Karaf? It's already provided out-of-the-box with Apache Karaf. The configuration for felix file-install is also explained in the documentation of Apache Karaf.
See section 4.8.1.
For the people searching for quick help here's an excerpt of it:
felix.fileinstall.enableConfigSave = true
felix.fileinstall.dir = ${karaf.etc}
felix.fileinstall.filter = .*\\.cfg
felix.fileinstall.poll = 1000
felix.fileinstall.noInitialDelay = true
felix.fileinstall.log.level = 3
felix.fileinstall.log.default = jul
It enabled to save configurations back to files, if those configurations contain the flag needed. This is a special handling of configuration admin service and file install.
It searches the etc folder of karaf for new configuration files which again will be used to configure via configuration admin service.
The filter for those configuration files is set to .cfg.
Every 1000 ms the directory defined will be polled.
No delay when starting.
Loglevel is set to 3 and it uses the jul logger.