Hi I confirm that bug exists also in my environment. Addtionaly if I change parmline to init=bin/sh, reboot and try to list files - only one line is displayed. Doesn't matter how many files exists. For example: ls -1 / gives only
bin and ls / displays only bin etc initrd media proc run sys usr and cat /etc/ssh/sshd_config displays only first line of the file. Boot was done from Debian 9.5 ISO, hercules version 3.12. Hope that it helps Piotr
