Support for Zstandard compression in EROFS is apparently disabled by default in RHEL at the moment.
This needs to be corrected as the failure mode for live images using erofs+zstd is a total crash and you don't easily get to see the error in things like VMs as the VM shuts off when the kernel crashes.
Here's the error observed:
This should be fixed in upstream RHEL (for Alt Images) and the Hyperscale kernel.
Metadata Update from @ngompa: - Issue assigned to ngompa
Submitted RHEL Jira: https://issues.redhat.com/browse/RHEL-87245
Submitted kernel MRs: