Hi everyone,
I think I found a "solution" for Radxa Zero 1GB, at least for Debian Bookworm.
I used armbian 22.08.1 Bullseye (Armbian_22.08.1_Radxa-zero_bullseye_current_5.10.139.img.xz) and apt upgraded everything to the latest (kernel == 6.1.11)
I guess armbian 23.02.1 Bullseye (Armbian_23.02.1_Radxa-zero_bullseye_current_6.1.14.img.xz) should work too?
Anyway, and then I flashed armbian 23.05.1 Bookworm (Armbian_23.5.1_Radxa-zero_bookworm_current_6.1.30.img.xz) (kernel == 6.1.30).
I copied the /boot folder with everything == 6.1.11 as well as /lib/modules/6.1.11* to the SD card (need to match the partition UUID in armbianEnv.txt with the new partition)
mount /dev/sdb1 MNTPOINT
cp -r 6.1.11-meson64/ MNTPOINT/lib/modules
rm -r MNTPOINT/boot
cp -r boot/ MNTPOINT
cp boot_6.1.30/armbianEnv.txt MNTPOINT/boot
cd MNTPOINT
rm initrd.img.old
ln -s boot/initrd.img-6.1.11-meson64 initrd.img.old
rm initrd.img
ln -s boot/initrd.img-6.1.11-meson64 initrd.img
rm vmlinuz.old
ln -s boot/vmlinuz-6.1.11-meson64 vmlinuz.old
rm vmlinuz
ln -s boot/vmlinuz-6.1.11-meson64 vmlinuz
umount MNTPOINT
It successfully booted into the system. I tried a lot of stuff, but looks like removing both plymouth and fuse3 works.
sudo apt remove plymouth fuse3 && sudo apt autoremove
I am not sure where plymouth is used, but fuse3 only used by ntfs3g which I don't use at all.
after everything, copy everything back and run
sudo update-initramfs -c -v -k 6.1.30-meson64
This should update the initramfs. After reboot there will no longer be bootloops.
Essentially I believe the problem is in initramfs but I am not sure why.