I want to install the xposed framework on my Nexus 5 and in the framework, the install/update option doesn't work.
My Nexus 5 runs Android 5.0 (Lollipop).
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Sign up to join this communityThe xposed framework does not currently support Android 5 (Lollipop). More specifically it doesn't work on the ART runtime which is available as a developer option on 4.4 and the only available runtime in Lollipop. You will have to wait for the xposed framework to be updated in order to install it on your Nexus 5 (or downgrade to 4.4 if it's that important).
Ryan's comment appears to show that it's actually the API level but I believe that's a side effect / symptom of running the ART runtime.
The Alpha version of Xposed is now available for Lollipop on ARMv7 and higher devices, so you should be able to install it without issue on the Nexus 5. Refer to the XDA thread for all the details:
http://forum.xda-developers.com/xposed/official-xposed-lollipop-t3030118