GitHub user sandabot closed the discussion with a comment: VMware OVA template 
stuck at Loading initial ramdisk...

ROOT CAUSE FOUND

The OVF declared vmx-13 (ESXi 6.0 compatibility) but the Debian 12 kernel 6.1 
with zstd-compressed initramfs fails to decompress on such an old virtual 
hardware, with Kernel panic - not syncing: System is deadlocked on memory at 
unpack_to_rootfs → unzstd.
Workaround: before first boot, upgrade VM Compatibility to ESXi 8.0 and later 
(vmx-20 or newer).
Suggested upstream fix: bump VirtualSystemType in the OVF from vmx-13 to at 
least vmx-17 during template build. Alternatively, switch initramfs compression 
from zstd back to gzip in Debian 12 build for lower memory footprint.


GitHub link: 
https://github.com/apache/cloudstack/discussions/12022#discussioncomment-16654898

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