I¹ve run into this as well on the same version.  If I add these packages
to config/package-lists/live.list:

live-boot
live-boot-initramfs-tools
live-config
live-config-sysvinit
live-tools

and rebuild, I can boot without the kernel panic.  However then I run
across an issue where live-config isn¹t started on boot.  I get the
following error which also bypasses the custom hooks as well:

[FAIL] startpar: service(s) returned failure: live-config Š failed!


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