When executing:
/usr/bin/grub-installer /target
>From install environment, the following part:
if [ "$bootdev" != "dummy" ] && [ ! "$frdev" ]; then
# check for a preseeded value
db_get grub-installer/bootdev || true
if [ -n "$RET" ] ; then
bootdev="$RET"
fi
fi
is the one responsible for getting the bad value.
Which means that something else populated grub-installer/bootdev
wrongly.
Checking...
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https://bugs.launchpad.net/bugs/1838525
Title:
LVM setup fails to install grub on virtio storage
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