I found https://bugs.launchpad.net/bugs/290153  had similar problems with 
dropping to a busybox and the work around
was adding rootdelay=90  I tried this on a recently created usb stick and found 
success, it booted to the Desktop there
are other things that users tried but simply giveing a wait provided success.

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busybox with (initramfs) / boot: / kernel not found
https://bugs.launchpad.net/bugs/276822
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