Hi All, I'm affected this bug too. I use custom kernel with following
options.

CONFIG_UNIX98_PTYS=y
CONFIG_LEGACY_PTYS=y

It may be important that my kernel has no ram disk (initrd).

Distro kernel boots without problem.

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https://bugs.launchpad.net/bugs/936667

Title:
  init(4): no available ptys stops boot

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