I fixed it by removing the amdgpu dkms package.
First check with dkms status to identify the packages. 
There were two packages for two different kernels.
Removed them with:
sudo dkms remove amdgpu/6.2.4-1664922.22.04 --all

Then was able to successfully install kernel:
6.8.0-49-generic #49-Ubuntu

After a reboot, the active display driver is: amdgpu
I would interpret the information that the amdgpu driver was already part of 
the kernel and a dkms package is not required.

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https://bugs.launchpad.net/bugs/2089335

Title:
  package linux-image-6.8.0-49-generic 6.8.0-49.49 failed to
  install/upgrade: run-parts: /etc/kernel/postinst.d/dkms exited with
  return code 11

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