Windows Server 2022 / Ubuntu 20.04, 22.04 / Processor compatibility mode / "can't allocate initrd"

[viceice]

Hi,

I tried to create a new virtual machine on my upgraded window server (2019 -> 2022). Before the upgrade it worked fine with Ubuntu 20.04 linux virtual machines (gen 2).

But now the boot stops with "can't allocate initrd".

Disabling "Processor compatibility mode" helps, but blocks live migrations to different servers.

Can't even boot a live disk.

[#2]

Creted now a gen1 VM and installing ubuntu 20.04 seems to work. Any ideas?

[#3]

Got to remove the quiet flag, now getting `Kernel Panic - not syncing: VFS: Unable to mount root fs on unknown-block(0,0)` on the live disk

[#4]

It seems the "Processor compatibility mode" feature is the cause. When enabled i get the mentioned error.
Still happens on `Ubuntu 20.04.5 LTS (GNU/Linux 5.15.0-1031-azure x86_64)`.

[#5]

Also happens on `5.15.0-58-generic` kernel on Ubuntu 22.04