|   | 1 |  initial version  | 
Solution: Install the extensions as described in the OP, and then just rename or remove ~/.jupyter/jupyter_nbconvert_config.json:
~/.jupyter$ mv jupyter_nbconvert_config.json old_jupyter_nbconvert_config.json
This file is generated when running :
jupyter nbextensions_configurator enable --user
and has the following content:
{
  "Exporter": {
    "template_path": [
      ".", 
      "/home/sschyman/Programs/sage-upgrade/local/lib/python2.7/site-packages/jupyter_contrib_nbextensions/templates"
    ], 
    "preprocessors": [
      "jupyter_contrib_nbextensions.nbconvert_support.CodeFoldingPreprocessor", 
      "jupyter_contrib_nbextensions.nbconvert_support.PyMarkdownPreprocessor"
    ]
  }, 
  "NbConvertApp": {
    "postprocessor_class": "jupyter_contrib_nbextensions.nbconvert_support.EmbedPostProcessor"
  }, 
  "version": 1
}
Not sure why it causes the error described, but deleting it does not seem to cause any harm and nbconvert runs as it should.
 Copyright Sage, 2010. Some rights reserved under creative commons license. Content on this site is licensed under a Creative Commons Attribution Share Alike 3.0 license.
 
                
                Copyright Sage, 2010. Some rights reserved under creative commons license. Content on this site is licensed under a Creative Commons Attribution Share Alike 3.0 license.