Turns out this is a GRUB issue. It was fixed upstream in the following
commit, which cleanly cherry-picks to groovy. I prepared a test build in
ppa:dannf/test and confirmed it resolves the issue.

commit a6838bbc6726ad624bd2b94991f690b8e9d23c69
Author: Javier Martinez Canillas <javi...@redhat.com>
Date:   Thu Sep 10 17:17:57 2020 +0200

    tftp: Roll-over block counter to prevent data packets timeouts
    
    Commit 781b3e5efc3 (tftp: Do not use priority queue) caused a regression
    when fetching files over TFTP whose size is bigger than 65535 * block size.
    
      grub> linux /images/pxeboot/vmlinuz
      grub> echo $?
      0
      grub> initrd /images/pxeboot/initrd.img
      error: timeout reading '/images/pxeboot/initrd.img'.
      grub> echo $?
      28


** Changed in: livecd-rootfs (Ubuntu)
       Status: New => Invalid

** Changed in: grub2 (Ubuntu)
       Status: New => Confirmed

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https://bugs.launchpad.net/bugs/1900773

Title:
  ARM servers timeout downloading initrd

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