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This looks like an issue similar to many other issues (such as https://github.com/sagemath/sage-windows/issues/7 and some others), where what's happening is Jupyter is searching for an using an external LaTeX distribution in order to do tex->PDF processing. And it is successfully finding your Windows Native MikTeX distribution.

However, since Sage for Windows runs under Cygwin, it is passing UNIX-style file paths to the Windows executables provided by MikTeX, and it does not know how to interpret them.

I will see if I can get an upstream fix to this in nbconvert, or if not there then at least a patch in Sage. In the meantime you can export to .tex and then pass it to your favorite LaTeX renderer manually.