Hi,
This error appears to be caused by some invalid config in the Industuino core.
This is an extract from the avr platform.txt from inside your zip.
You can see that tools.avrdude.config.path is incorrectly set to the "/Applications/Arduino 1.6.3.app/Contents/Java/hardware"
This area of arduino has been maturing/changing in the past couple of years but the path specified in the platform.txt has never been valid. I expect older arduino versions might be forcing this path.
You can force it yourself by adding a board.txt to your project then adding this to it. Click save for the board.txt before clicking upload to try it.
add a board.txt to your project and put this in it... tools.avrdude.config.path={path}/etc/avrdude.conf
note: you do not have to install the industruino below the arduino ide. You can use your sketchbook\hardware folder instead which then survives future ide upgrades. I installed the hardware into "C:\Users\[your name]\Documents\Arduino\Hardware\Industruino" so that i could see the platform.txt in "C:\Users\[your name]\Documents\Arduino\Hardware\Industruino\avr". Using this method avoids altering the arduino ide installation.
this is what is in the platform.txt. you can see the invalid path! ... (Applications/Arduino 1.6.3.app/Contents/Java/hardware/)
# AVR Uploader/Programmers tools
# ------------------------------
tools.avrdude.path={runtime.tools.avrdude.path}
tools.avrdude.cmd.path={path}/bin/avrdude
tools.avrdude.config.path={path}/Applications/Arduino 1.6.3.app/Contents/Java/hardware/Industruino/avr/install/avrdude.conf
Debugging with the Industruino To use the usb upload port for debugging add the following to the project board.txt
vm.debug.class_type.Serial=VM_DEBUGGER_TYPE_USBSERIAL
To use Serial1 set "vMicro>Debugger>Remote Port" to Serial1 and ensure the local port is set to the PC COM port connected to Serial1