Oh well, first guess was wrong. The kernel config is fine. The problem is with qemu. The kernel became too big for qemu.
Edit the qemu file source file hw/arm_boot.c
Change this define to something bigger: -#define INITRD_LOAD_ADDR 0x00800000 +#define INITRD_LOAD_ADDR 0x00a00000
Rebuild qemu and the boot is fine.
Oh well, first guess was wrong. The kernel config is fine. The problem is with qemu. The kernel became too big for qemu.
Edit the qemu file source file hw/arm_boot.c
Change this define to something bigger:
-#define INITRD_LOAD_ADDR 0x00800000
+#define INITRD_LOAD_ADDR 0x00a00000
Rebuild qemu and the boot is fine.