All LXD virtual machines are hitting this too.

Run:
 - lxc launch images:ubuntu/focal/cloud f1 && lxc console f1

And you'll see it show that message. As mentioned above, boot then still
goes ahead and you get a login prompt, but as that may not always be the
case.

For example in linux-kvm, that fallback mechanism doesn't appear to work and we 
instead get a kernel panic unless we've manually modified the initrd to be gzip:
https://bugs.launchpad.net/cloud-images/+bug/1873809

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https://bugs.launchpad.net/bugs/1835660

Title:
  initramfs unpacking failed

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