just a hunch since I can't see you data, but I believe that error occurs when you have variable levels that exist in the test set which don't exist in the training set.
this can easily happen when you have a factor variable with a high number of levels, or one level has a low number of instances.
since you're using CV folds, it's possible the holdout set on one of the loops has foreign levels to the training data.
I'd suggest either:
A) use model.matrix() to one-hot encode your factor variables
B) keep setting different seeds until you get a CV split that doesn't have this error occur.
EDIT: yep, with that traceback, your 3rd CV holdout has a factor level in its test set that doesn't exist in the training. so the predict function sees a foreign value and doesn't know what to do.
EDIT 2: Here's a quick example to show what I mean by "factor levels not in the test set"
#Example data with low occurrences of a factor level:
set.seed(222)
data = data.frame(cbind( y = sample(0:1, 10, replace = TRUE), x1 = rnorm(10), x2 = as.factor(sample(0:10, 10, replace = TRUE))))
data$x2 = as.factor(data$x2)
data
y x1 x2
[1,] 1 -0.2468959 2
[2,] 0 -1.2155609 6
[3,] 0 1.5614051 1
[4,] 0 0.4273102 5
[5,] 1 -1.2010235 5
[6,] 1 1.0524585 8
[7,] 0 -1.3050636 6
[8,] 0 -0.6926076 4
[9,] 1 0.6026489 3
[10,] 0 -0.1977531 7
#CV fold. This splits a model to be trained on 80% of the data, then tests against the remaining 20%. This is a simpler version of what happens when you call gbm's CV fold.
CV_train_rows = sample(1:10, 8, replace = FALSE) ; CV_test_rows = setdiff(1:10, CV_train_rows)
CV_train = data[CV_train_rows,] ; CV_test = data[CV_test_rows,]
#build a model on the training...
CV_model = lm(y ~ ., data = CV_train)
summary(CV_model)
#note here: as the model has been built, it was only fed factor levels (3, 4, 5, 6, 7, 8) for variable x2
CV_test$x2
#in the test set, there are only levels 1 and 2.
#attempt to predict on the test set
predict(CV_model, CV_test)
Error in model.frame.default(Terms, newdata, na.action = na.action, xlev = object$xlevels) :
factor x2 has new levels 1, 2