Awesome, thanks for categorizing that for me @vorlon! I was trying hard
to find the right home for the issue, but didn't even think of livecd-
rootfs :)

I still am not too sure about the ultimate value offered by the
initramfs fallback. It seems like you would: (a) never want initramfs,
or (b) always want initramfs. Whereas the initrdfail mechanism isn't
either of those, and it introduces complexity and confusion and
potentially masks the actual issue.

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https://bugs.launchpad.net/bugs/1870189

Title:
  initramfs does not get loaded

Status in grub2 package in Ubuntu:
  Won't Fix
Status in linux-azure package in Ubuntu:
  Confirmed
Status in livecd-rootfs package in Ubuntu:
  Triaged

Bug description:
  A Gen-1 Ubuntu 19.10 VM on Azure was created and upgraded to Ubuntu
  20.04 by “do-release-upgrade –d”.

  Then the latest Ubuntu v5.6 kernel was installed from
  https://kernel.ubuntu.com/~kernel-ppa/mainline/v5.6/. As soon as a
  reboot was performed, a panic with the v5.6 kernel occured because the
  rootfs can not be found.

  It turns out by default, initramfs does not get loaded:

  /boot/grub/grub.cfg:
  menuentry 'Ubuntu' --class ubuntu --class gnu-linux --class gnu --class os 
$menuentry_id_option 'gnulinux-simple-3d2737e8-
  b95a-42bf-bac1-bb6fb4cda87f' {
  …
          if [ "${initrdfail}" = 1 ]; then
            linux /boot/vmlinuz-5.6.0-050600-generic 
root=PARTUUID=bc3d472f-401e-4774-affa-df1acba65a73 ro  console=tty1 
console=ttyS0 earlyprintk=ttyS0 ignore_loglevel sysrq_always_enabled 
unknown_nmi_panic
            initrd        /boot/initrd.img-5.6.0-050600-generic
          else
            linux /boot/vmlinuz-5.6.0-050600-generic 
root=PARTUUID=bc3d472f-401e-4774-affa-df1acba65a73 ro  console=tty1 
console=ttyS0 earlyprintk=ttyS0 ignore_loglevel sysrq_always_enabled 
unknown_nmi_panic panic=-1
            #Dexuan: here the initrd line is missing!
          fi
          initrdfail
  }

  
  As we can see, Ubuntu only uses the initrd.img if initrdfail=1. Normally, 
initrdfail = 0, so when we boot the v5.6 kernel for the first time, we must hit 
the “fail to mount rootfs” panic and the kernel will automatically reboot….   

  Also, the “initrdfail” here marks initrdfail=1, so when the kernel
  boots for the 2nd time, the kernel should successfully boot up.  Next,
  when the kernel boots for the 3rd time, it panics again since the
  userspace program resets initrdfail to 0, and next time when the
  kernel boots, it can boot up successfully -- this
  “panic/success/panic/success” pattern repeats forever…

  
  The linux-azure kernels are not affected since they have the vmbus driver and 
storage drivers built-in (i.e. “=y”):
  /boot/config-5.3.0-1013-azure:CONFIG_HYPERV_STORAGE=y
  /boot/config-5.3.0-1013-azure:CONFIG_HYPERV=y
  /boot/config-5.4.0-1006-azure:CONFIG_HYPERV_STORAGE=y
  /boot/config-5.4.0-1006-azure:CONFIG_HYPERV=y
  /boot/config-5.6.0-050600-generic:CONFIG_HYPERV_STORAGE=m
  /boot/config-5.6.0-050600-generic:CONFIG_HYPERV=m
  The v5.6 kernel uses =m rather than =y, so is affected here.

  
  It looks the setting may be intentional, but we should not assume a customer 
kernel must have the necessary vmbus/storage drivers built-in. 

  This issue only happens to the Ubuntu Marketplace image (19.10 and maybe 
19.04 as well?) on Azure. 
  We installed a Ubuntu  20.04 VM from the .iso file from 
http://cdimage.ubuntu.com/daily-live/pending/ and don’t see the strange grub 
issue.

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