A LATE howler from Steve Wilson once again highlighted Lynn's problems between the posts as Folkestone claimed a stoppage time equaliser.
Wilson and his defence were nowhere to be seen at a Folkestone free-kick as Mike Munday glanced the ball home,
But it was Wilson's overall display which must have left the watching Exeter scout with plenty of encouragement for the forthcoming Trophy tussle at The Walks.
Joint caretaker manager Darren Bloodworth said: "From the beginning today Steve's performance wasn't a confident one, but I don't think you can just blame him for the goal.
"We showed indiscipline by conceding a free-kick and we looked a bag of nerves when they took it. The only way you could see Folkestone scoring was through a set-piece.
"It was a real kick in the teeth as all our effort and commitment was thrown away in 30 seconds of madness and we've dropped two really big points."
Joint caretaker boss Kevin Boon added: "I thought we played well today, but you have to give credit to Folkestone. They were well organised and they will have a big say against other teams at the top before the end of the season."
Folkestone's late goal was rough justice on Lynn, who were firmly in control on a quagmire of a pitch, which deteriorated as the contest wore on.
Lynn's crisp, passing football was at a premium on the soggy surface, but they still created enough chances to win well before the final whistle.
Half opportunities came the way of David Staff (twice), Mark Camm and Carl Holmes in the opening 35 minutes, while at the other end March was on hand to scramble a Tony Hogg effort clear.
The best chance of a frustrating first period fell to Jack Defty, who somehow managed to scramble a pinpoint cross from Adam Jones wide.
Lynn continued to hold the upper hand after .the restart, with Gary Setchell coming close to converting a Paul Raynor corner in the 56th minute.
A minute later, Jones' centre found the head of David Staff, whose goalbound effort forced Folkestone keeper Anthony Kessell into a fine fingertip stop down to his left.
It was always going to take something special to break the deadlock and the script was written for Staff when Lynn were awarded a free-kick 25yards out following a foul on Defty in the 58th minute.
Staff nonchalantly stepped up to curl home a glorious set piece in the top corner of the Folkestone net.
The excitement had barely died down when the flu-ridden Watkins was replaced by Alex Notman.
Although clearly not match fit, the former Manchester United and Norwich City star, displayed some nice touches on his debut and could have increased Lynn's lead when he flashed an effort wide midway through the half.
Lynn were given a warning of Folkestone's ability on the break when the stranded Wilson slipped in his area, but luckily for him James Dryden fired into the side netting.
Despite only holding a one goal lead, Lynn generally looked comfortable with their slender advantage.
But with only seconds left on the clock a needless challenge from March gave Invicta the lifeline they needed when Munday got the faintest of touches to a John Ayling freekick on the edge of the box.
Lynn: Wilson, Jones, March, Setchell, Fuff, Raynor, Defty, Holmes, Staff (Harris 75), Watkins (Notman 59), Camm. Subs not used: Woodrow, Bacon, Nobes.
Goal: Staff (58).
Folkestone: Kessell, Watkins, Lamb, Flanagan, Guest, Lindsey (Blackman 87), Hambley (Chandler 73), Munday, Dryden, Hogg Overton (Ayling 73). Not used: Everitt, Egan.
Booking: Drew Watkins (61).
Goal: Munday (90).
Referee: JD Woodroffe (Cambs). Attendance: 1004.