The correct workaround or fix for the time being is to downgrade the
version 0.120ubuntu1 to the working version 0.103ubuntu16.

You will need to chroot the root partition to do this.
I believe package intel-microcode has nothing to with this.

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https://bugs.launchpad.net/bugs/1481733

Title:
  Kernel panic when booting with initramfs-tools version 0.120ubuntu1
  generated initramfs

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