Maegfaer has kindly provided these installation instructions for MO2.

Install guide for Mod Organizer 2 + Wrye Bash:

I (Maegfaer) assume you know the basics of MO2 and that you already have Wrye Bash accessable through MO2.

1. First, install the mod as any other through MO2. Enable it in the left list.
2. Select "<Edit...>" in the executable drop down list, select Wrye Bash. Now enable "Create files in mod instead of overwrite" and choose "Oblivion XP Update" in the dropdown.
3. Start Wrye Bash through MO2. Go to the installers tab, if installers are not enabled there will be a popup asking to generate some files. Agree to it and wait until it's done.
4. Drag the downloaded archive of this mod into the left panel of the installers tab. Right click on it, choose "Install..."
5. Go through the install wizard. I recommend going through the guided configuration in case you don't want Oblivion XP to mess with health/magicka/fatigue (I let Ascension determine those stats). When done, exit Wrye Bash.
6. Select "<Edit...>" in the executable drop down list again, select Wrye Bash. Disable the "Create files in mod instead of overwrite".
7. Done! If your sorting is right and you have no conflicting mods and have all the requirements (MenuQue and xOBSE), it should work.

Install UI through MO2 first. Then above. Then sort load order with BOSS through MO2.