Manuel's error in his factor tree and prime factorization of 60 lies in the fact that he did not find the prime factors of 4.
The correct prime factorization of 60 should include the prime factors of all branches. Since 4 can be further broken down into 2 times 2 (which are both prime), the full prime factorization of 60 should be:
60 = 2 × 2 × 3 × 5, or expressed in exponential form: 60 = 2² × 3 × 5.
Therefore, the correct answer is: He did not find the prime factors of 4.