Hi,
An additional problem is I cannot find any way to debug the problem. Something (systemd? dracut?) asks for a root password in order to get to the emergency shell, and I can find no way around this nor any password which works. I wish there was a "stop asking for a password" option on the kernel command line.
Trapped into the same thing a few days ago. dracut uses sulogin now.
Run dracut with --no-hostonly. Adding dracut-config-generic to the kickstart package list should have the same effect (not tested though). That'll disable the root login in the initramfs and sulogin gives you a shell when you tap enter.
HTH, Gerd