For me its happening the same, if lz4 is activated get this initramfs
unpacking failed: Decoding failed at first line of boot, if switch to
gzip the error is gone, switching back to lz4 make the initramfs
unpacking failed: Decoding failed back again at boot, staying at gzip
for the time being.

Also no idea if relative, on my machine running Ubuntu Cinnamon 20.04 ,
when the lz4 is activated over the initramfs , it gives the error at
boot and will not show the oem logo during boot, if gzip is activated,
no error and it does show the oem logo during boot. Secure boot on my
machine have been always disabled and remains disabled.

** Changed in: initramfs-tools (Ubuntu)
       Status: Invalid => Confirmed

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https://bugs.launchpad.net/bugs/1835660

Title:
  initramfs unpacking failed

Status in initramfs-tools package in Ubuntu:
  Confirmed
Status in linux package in Ubuntu:
  Confirmed

Bug description:
  "initramfs unpacking failed: Decoding failed",  message appears on
  boot up.

  If I "update-initramfs" using gzip instead of lz, then boot up passes
  without decoding failed message.

  ---

  However, we currently believe that the decoding error reported in
  dmesg is actually harmless and has no impact on usability on the
  system.

  Switching from lz4 to gzip compression, simply papers over the
  warning, without any benefits, and slows down boot.

  Kernel should be fixed to correctly parse lz4 compressed initrds, or
  at least lower the warning, to not be user visible as an error.

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