Using Jun 26's Sid_vendor_server-kali, my Zero 3W is stuck in a loop.
I can't "Create a loop password" as it'll instantly jump to the "armbian-security login:" prompt.
If I login with the default root:1234, I'll briefly see the welcome screen, followed by a very brief "waiting for the system to finish booting", then it's back to 1.
This occurs regardless of internet access (provided by a USB-C ethernet adapter, for which Armbian reports a valid LAN IP address).