I tried the same thing, removal of the persistent =/file   to /file , removal 
of "persistent" provides a workaround for it
to boot to the Desktop...good find Chip Piller   I hope now this will provide 
enough details for a solution to the issue
and they can get persistence working again. my last test the persistence was 
working. seems something got changed
right after that.

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busybox with (initramfs) / boot: / kernel not found
https://bugs.launchpad.net/bugs/276822
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