Hi,

Yes, this is expected.  The kernel build process was changed a few releases 
ago to build in two phases: first the modules, then the kernel itself.  The 
initramfs image is built during the second phase where it can include the 
pre-built modules, and that is where the config option now gets set.  See:

https://github.com/coreos/coreos-overlay/blob/master/sys-kernel/coreos-kernel/coreos-kernel-4.7.3.ebuild#L62

Thanks.

David

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