Fedora Server 35 Cloud Image - Issues with virt-sysprep

I am having an issue with Fedora 35 Cloud Image (OpenStack) anbd virt-sysprep.

I usually keep the images updated, and deploy as necessary. Every so often I download a fresh one and do a single update, which was the case today.

However, the VM would not boot. Only by booting to the original kernel I could get a login prompt.

After some research, I went to /boot/loader/ and compared the entries. The entries for the new kernel were fairly different. After making them the same as the file pointing to the original kernel, and running grub2-mkconfig, it worked fine.

Was there any change that makes Fedora Cloud Images incompatible with virt-sysprep?

Thank you.

If you could recall the config before make modification, would you like to share the differents here?