Failed to launch Flatcar Installer after reboot

[bkmzio]

Description

I have tried to execute modify-ubuntu.sh script both on 18.04 and 20.04 versions in Oracle Cloud (instance type:
VM.Standard.E4.Flex with 1 OCPU and 4 Gb or RAM) and facing some boot problems:

[  531.587072] systemd[1]: Starting Apply Kernel Variables...
[  531.590715] systemd[1]: Finished Create list of static device nodes for the current kernel.
[  531.597545] systemd[1]: ignition-setup.service: Succeeded.
[  531.598452] systemd[1]: Finished Ignition (setup).
[  531.602254] systemd-sysctl[27205]: Not setting net/ipv4/conf/all/accept_source_route (explicit setting exists).
[  531.606417] systemd-sysctl[27205]: Not setting net/ipv4/conf/default/accept_source_route (explicit setting exists).
[  531.614210] systemd-sysctl[27205]: Not setting net/ipv4/conf/all/promote_secondaries (explicit setting exists).
[  531.621623] systemd-sysctl[27205]: Not setting net/ipv4/conf/default/promote_secondaries (explicit setting exists).
[  531.624659] systemd-sysctl[27205]: Not setting net/ipv4/conf/all/rp_filter (explicit setting exists).
[  531.627001] systemd-sysctl[27205]: Not setting net/ipv4/conf/default/rp_filter (explicit setting exists).
[  531.627624] systemd[1]: Finished Apply Kernel Variables.
[  531.627823] systemd[1]: emergency.service: Succeeded.
[  531.627977] systemd[1]: Stopped Emergency Shell.
[  531.628147] systemd[1]: initrd-setup-root.service: Succeeded.
[  531.628296] systemd[1]: Finished Root filesystem setup.
[  531.628637] systemd[1]: Starting dracut ask for additional cmdline parameters...
[  OK  ] Finished dracut ask for additional cmdline parameters.
[  531.646790] systemd[1]: Finished dracut ask for additional cmdline parameters.
[  531.852306] audit: type=1130 audit(1631100015.133:3745): pid=1 uid=0 auid=4294967295 ses=4294967295 subj=kernel msg='unit=dracut-cmdline-ask comm="systemd" exe="/usr/lib64/systemd/systemd" hostname=? addr=? terminal=? res=success'
         Starting dracut cmdline hook...
[  531.668191] systemd[1]: Starting dracut cmdline hook...
[  531.677554] dracut-cmdline[27230]: dracut-dracut-050
[  531.679688] dracut-cmdline[27230]: Using kernel command line parameters: rd.driver.pre=btrfs rootflags=rw mount.usrflags=ro BOOT_IMAGE=/boot/flatcar_production_pxe.vmlinuz initrd=flatcar_production_pxe_image.cpio.gz flatcar.first_boot=1 console=tty1 console=ttyS0 ignition.config.url=http://169.254.169.254/openstack/latest/user_data
[  OK  ] Finished dracut cmdline hook.
[  531.726480] systemd[1]: Finished dracut cmdline hook.
         Starting dracut pre-udev hook...
[  531.734041] systemd[1]: Starting dracut pre-udev hook...
[  OK  ] Finished dracut pre-udev hook.
[  531.756471] systemd[1]: Finished dracut pre-udev hook.
         Starting Rule-based Manage…for Device Events and Files...
[  531.768937] systemd[1]: Starting Rule-based Manager for Device Events and Files...
[  531.801376] systemd[1]: Started Rule-based Manager for Device Events and Files.
[  OK  ] Started Rule-based Manager for Device Events and Files.
         Starting dracut pre-trigger hook...
         Starting Network Service...
[  531.817044] systemd[1]: Starting dracut pre-trigger hook...
[  531.823271] systemd[1]: Starting Network Service...
[  531.837423] dracut-pre-trigger[27332]: rd.md=0: removing MD RAID activation
[  OK  ] Finished dracut pre-trigger hook.
[  531.870611] systemd[1]: Finished dracut pre-trigger hook.
         Starting Coldplug All udev Devices...
[  531.880501] systemd[1]: Starting Coldplug All udev Devices...
[  531.891240] systemd-networkd[27333]: Enumeration completed
[  531.893887] systemd[1]: Started Network Service.
[  OK  ] Started Network Service.
         Starting Network Name Resolution...
[  531.904859] systemd[1]: Starting Network Name Resolution...
[  OK  ] Finished Coldplug All udev Devices.
[  531.956365] systemd[1]: Finished Coldplug All udev Devices.
[  531.987940] systemd-udevd[27373]: Using default interface naming scheme 'v247'.
[  531.997724] systemd-udevd[27373]: ethtool: autonegotiation is unset or enabled, the speed and duplex are not writable.
[  532.028924] systemd-resolved[27365]: Positive Trust Anchors:
[  532.035480] systemd-resolved[27365]: . IN DS 20326 8 2 e06d44b80b8f1d39a95c0b0d7c65d08458e880409bbc683457104237c7f8ec8d
[  532.050438] systemd-resolved[27365]: Negative trust anchors: home.arpa 10.in-addr.arpa 16.172.in-addr.arpa 17.172.in-addr.arpa 18.172.in-addr.arpa 19.172.in-addr.arpa 20.172.in-addr.arpa 21.172.in-addr.arpa 22.172.in-addr.arpa 23.172.in-addr.arpa 24.172.in-addr.arpa 25.172.in-addr.arpa 26.172.in-addr.arpa 27.172.in-addr.arpa 28.172.in-addr.arpa 29.172.in-addr.arpa 30.172.in-addr.arpa 31.172.in-addr.arpa 168.192.in-addr.arpa d.f.ip6.arpa corp home internal intranet lan local private test
[FAILED] Failed to start Network Name Resolution.
See 'systemctl status systemd-resolved.service' for details.
[  532.100032] systemd-resolved[27365]: Defaulting to hostname 'linux'.
[  OK  ] Stopped Network Name Resolution.
[  532.123107] systemd-resolved[27365]: Failed to listen on UDP socket 127.0.0.53:53: Cannot assign requested address
[  532.132855] systemd-resolved[27365]: Failed to start manager: Cannot assign requested address
[  532.136135] systemd-networkd[27333]: eth0: Link UP
         Starting Network Name Resolution...
[  532.140413] systemd-udevd[27366]: ethtool: autonegotiation is unset or enabled, the speed and duplex are not writable.
[  532.153383] systemd[1]: systemd-resolved.service: Main process exited, code=exited, status=1/FAILURE
[  532.165445] systemd[1]: systemd-resolved.service: Failed with result 'exit-code'.
[  532.171098] systemd[1]: Failed to start Network Name Resolution.
[  532.175721] systemd-networkd[27333]: eth0: Gained carrier
[  532.179815] systemd-networkd[27333]: lo: Link UP
[  532.183828] systemd-networkd[27333]: lo: Gained carrier
[  532.189373] systemd-networkd[27333]: eth0: DHCPv4 address 10.0.1.211/24 via 10.0.1.1
[  532.195858] systemd-networkd[27333]: eth0: Classless static routes received from DHCP server: ignoring router option