affects 983357 + debian-installer severify 983357 serious thanks It appears that the root cause of this bug has been reported upstream here:
https://bugzilla.kernel.org/show_bug.cgi?id=207695 It seems that there is an error trying to udev trigger the Xen virtual keyboard, and this causes start-udev to bail out, which causes init to bail out and the kernel to panic. Removing the set -e from start-udev appears to be a viable workaround that d-i might want to consider.