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An "Invalid Equation" error while creating HTML and MD reports using knitr signifies that there is an issue with the LaTeX syntax of the equation. Knitr uses LaTeX to format equations, and any error in that syntax will result in an "Invalid Equation" error. It could be due to missing or extra symbols, incorrect formatting, or incompatible packages. To fix this error, it's essential to check the LaTeX syntax of the equation and ensure that it is correct.