I've just tried to provision a new VM (via uvtools) using the latest
focal kernel (5.4.0-25-generic) and it seems to boot fine with 256MB of
memory. However, I haven't tried to do the release upgrade from 19.10
(I'll test this later).

If you have a way to boot into the previous kernel you can try to
install the linux-kvm kernel and boot with this one, it has smaller
memory footprint and it should be able to boot fine. Then, once it's
booted you probably need also a swap file / swap partition to be able to
do your normal activities without triggering the oom killer.

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https://bugs.launchpad.net/bugs/1872535

Title:
  Kernel panic in 5.4.0-21-generic when try to launch on system with 256
  MB RAM

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