LXD virtual machine freezes on bootup and accessing storage driver

LXD virtual machine freezes on bootup and when accessing mounted external storage driver

The 2 issues has been raised on github at the LXD project, where it turned out, the issue is related to the kvm kernel using for vm (qemu), switching the generic kernel within the vm (qemu) has solved the issues.

All the steps to reproduce the issue incl. output and panics has been documented, thus I'm kindly ask to refer to the github issues: https://github.com/lxc/lxd/issues/8400 and https://github.com/lxc/lxd/issues/7224

Steps to reproduce:
lxc init ubuntu:focal v1 --vm
lxc config set v1 limits.cpu 4
lxc config device add v1 extv1 disk source=/external/mount/backup path=/mnt/external
lxc start v1
lxc console v1

workaround:
apt install linux-generic
apt remove linux-image-5.4.0-1032-kvm
update-grub