XZ compressed Kernel modules issue

[TotieBash]

It looks like live-script busybox does not uncompress on-the-fly kernel modules with 'kernel-mod.ko.xz' compression. Is this the root of my issue? I am using the latest RHEL8.8. I also filed #255.

I notice the Ubuntu 22.04 kernel modules are plain-old kernel-mod.ko and they are not xz compressed.

I was informed that recompiling a new kernel with overlayfs will fix my error. I still need to compile the kernel to see if that will fix it. REF: https://access.redhat.com/discussions/7002214

It looks related to: #6

[TotieBash]

Success after recompiling the latest 6.3.9 kernel from the official kernel.org website.

Special thanks to Miguel Luis Aquino for suggesting/recommending/insisting compiling the kernel. I would be still pulling my hair out even up till now. I appreciate the troubleshooting dialogue.
https://access.redhat.com/discussions/7002214

As far as linux-live-kit I still think the kernel-modules being compressed might be the root cause. This newly compiled kernel from scratch has uncompress .ko modules and it works. Same with Ubuntu 22.04. This issue affects at least all RHEL clones (ie RHEL7/8, CENTOS7/8, ROCKY8)

Working Screenshots: