Well, I was trying different sizes to see if there was any difference. Logs with 16m:
Image Name: MIPS OpenWrt Linux-5.4.143
Image Type: MIPS Linux Kernel Image (uncompressed)
Data Size: 2454307 Bytes = 2.3 MiB
Load Address: 80001000
Entry Point: 80001000
Verifying Checksum ... OK
Loading Kernel Image ... OK
OpenWrt kernel loader for MIPS based SoC
Copyright (C) 2011 Gabor Juhos <juhosg@openwrt.org>
Decompressing kernel... done!
Starting kernel at 80001000...
[ 0.000000] Linux version 5.4.143 (root@z-VirtualBox) (gcc version 8.4.0 (OpenWrt GCC 8.4.0 r16279-5cc0535800)) #0 SMP Tue Aug 31 22:20:08 2021
[ 0.000000] SoC Type: MediaTek MT7621 ver:1 eco:3
[ 0.000000] printk: bootconsole [early0] enabled
[ 0.000000] CPU0 revision is: 0001992f (MIPS 1004Kc)
[ 0.000000] MIPS: machine is UniElec U7621-06 (16M flash)
[ 0.000000] Initrd not found or empty - disabling initrd
[ 0.000000] VPE topology {2,2} total 4
[ 0.000000] Primary instruction cache 32kB, VIPT, 4-way, linesize 32 bytes.
[ 0.000000] Primary data cache 32kB, 4-way, PIPT, no aliases, linesize 32 bytes
[ 0.000000] MIPS secondary cache 256kB, 8-way, linesize 32 bytes.
[ 0.000000] Zone ranges:
[ 0.000000] Normal [mem 0x0000000000000000-0x000000000fffffff]
[ 0.000000] HighMem [mem 0x0000000010000000-0x0000000023ffffff]
[ 0.000000] Movable zone start for each node
[ 0.000000] Early memory node ranges
[ 0.000000] node 0: [mem 0x0000000000000000-0x000000001bffffff]
[ 0.000000] node 0: [mem 0x0000000020000000-0x0000000023ffffff]
[ 0.000000] Initmem setup node 0 [mem 0x0000000000000000-0x0000000023ffffff]
[ 0.000000] percpu: Embedded 14 pages/cpu s26736 r8192 d22416 u57344
[ 0.000000] Built 1 zonelists, mobility grouping on. Total pages: 130496
[ 0.000000] Kernel command line: console=ttyS0,115200 rootfstype=squashfs,jffs2
[ 0.000000] Dentry cache hash table entries: 32768 (order: 5, 131072 bytes, linear)
[ 0.000000] Inode-cache hash table entries: 16384 (order: 4, 65536 bytes, linear)
[ 0.000000] Writing ErrCtl register=000000c0
[ 0.000000] Readback ErrCtl register=000000c0
[ 0.000000] mem auto-init: stack:off, heap alloc:off, heap free:off
[ 0.000000] Memory: 509744K/524288K available (5904K kernel code, 204K rwdata, 1272K rodata, 1244K init, 230K bss, 14544K reserved, 0K cma-reserved, 262144K highmem)
[ 0.000000] SLUB: HWalign=32, Order=0-3, MinObjects=0, CPUs=4, Nodes=1
[ 0.000000] rcu: Hierarchical RCU implementation.
[ 0.000000] rcu: RCU calculated value of scheduler-enlistment delay is 25 jiffies.
[ 0.000000] NR_IRQS: 256
[ 0.000000] random: get_random_bytes called from start_kernel+0x36c/0x584 with crng_init=0
[ 0.000000] CPU Clock: 880MHz
[ 0.000000] clocksource: GIC: mask: 0xffffffffffffffff max_cycles: 0xcaf478abb4, max_idle_ns: 440795247997 ns
[ 0.000000] clocksource: MIPS: mask: 0xffffffff max_cycles: 0xffffffff, max_idle_ns: 4343773742 ns
[ 0.000008] sched_clock: 32 bits at 440MHz, resolution 2ns, wraps every 4880645118ns
[ 0.007810] Calibrating delay loop... 583.68 BogoMIPS (lpj=1167360)
[ 0.042015] pid_max: 32768 minimum: 301
[ 0.046797] Mount-cache hash table entries: 1024 (order: 0, 4096 bytes, linear)
[ 0.054023] Mountpoint-cache hash table entries: 1024 (order: 0, 4096 bytes, linear)
[ 0.064509] rcu: Hierarchical SRCU implementation.
[ 0.069972] smp: Bringing up secondary CPUs ...
[ 8.630577] Primary instruction cache 32kB, VIPT, 4-way, linesize 32 bytes.
[ 8.630588] Pa cache 32kB, 4-way, PIPT, no aliases, linesize 32 bytes
[ 8.630600] MIPS secondary cache 256kB, 8-way, linesize 32 bytes.
[ 8.630703] CPU1 revision is: 0001992f (MIPS 1004Kc)
[ 0.102743] Synchronize counters for CPU 1: done.
[ 8.202027] Primary instruction cache 32kB, VIPT, 4-way, linesize 32 bytes.
[ 8.202035] Primary data cache 32kB, 4-way, PIPT, no aliases, linesize 32 bytes
[ 8.202044] MIPS secondary cache 256kB, 8-way, linesize 32 bytes.
[ 8.202100] CPU2 revision is: 0001992f (MIPS 1004Kc)
[ 0.167467] Synchronize counters for CPU 2: done.
[ 8.265387] Primary instruction cache 32kB, VIPT, 4-way, linesize 32 bytes.
[ 8.265395] Primary data cache 32kB, 4-way, PIPT, no aliases, linesize 32 bytes
[ 8.265405] MIPS secondary cache 256kB, 8-way, linesize 32 bytes.
[ 8.265466] CPU3 revision is: 0001992f (MIPS 1004Kc)
[ 0.225322] Synchronize counters for CPU 3: done.
[ 0.255200] smp: Brought up 1 node, 4 CPUs
[ 0.263532] clocksource: jiffies: mask: 0xffffffff max_cycles: 0xffffffff, max_idle_ns: 7645041785100000 ns
[ 0.273215] futex hash table entries: 1024 (order: 3, 32768 bytes, linear)
[ 0.280245] pinctrl core: initialized pinctrl subsystem
[ 0.286980] NET: Registered protocol family 16
[ 0.321126] workqueue: max_active 576 requested for napi_workq is out of range, clamping between 1 and 512
[ 0.332518] clocksource: Switched to clocksource GIC
[ 0.339270] NET: Registered protocol family 2
[ 0.343787] IP idents hash table entries: 4096 (order: 3, 32768 bytes, linear)
[ 0.351596] tcp_listen_portaddr_hash hash table entries: 512 (order: 0, 6144 bytes, linear)
[ 0.359905] TCP established hash table entries: 2048 (order: 1, 8192 bytes, linear)
[ 0.367503] TCP bind hash table entries: 2048 (order: 2, 16384 bytes, linear)
[ 0.374591] TCP: Hash tables configured (established 2048 bind 2048)
[ 0.381009] UDP hash table entries: 256 (order: 1, 8192 bytes, linear)
[ 0.387492] UDP-Lite hash table entries: 256 (order: 1, 8192 bytes, linear)
[ 0.394658] NET: Registered protocol family 1
[ 0.398985] PCI: CLS 0 bytes, default 32
[ 0.492487] 4 CPUs re-calibrate udelay(lpj = 1163264)
[ 0.499059] workingset: timestamp_bits=14 max_order=17 bucket_order=3
[ 0.512458] random: fast init done
[ 0.520214] squashfs: version 4.0 (2009/01/31) Phillip Lougher
[ 0.525990] jffs2: version 2.2 (NAND) (SUMMARY) (LZMA) (RTIME) (CMODE_PRIORITY) (c) 2001-2006 Red Hat, Inc.
[ 0.537556] bounce: pool size: 64 pages
[ 0.543317] mt7621_gpio 1e000600.gpio: registering 32 gpios
[ 0.549158] mt7621_gpio 1e000600.gpio: registering 32 gpios
[ 0.554990] mt7621_gpio 1e000600.gpio: registering 32 gpios
[ 0.561344] Serial: 8250/16550 driver, 3 ports, IRQ sharing disabled
[ 0.569143] printk: console [ttyS0] disabled
[ 0.573437] 1e000c00.uartlite: ttyS0 at MMIO 0x1e000c00 (irq = 19, base_baud = 3125000) is a 16550A
[ 0.582423] printk: console [ttyS0] enabled
[ 0.582423] printk: console [ttyS0] enabled
[ 0.590683] printk: bootconsole [early0] disabled
[ 0.590683] printk: bootconsole [early0] disabled
[ 0.605025] spi-mt7621 1e000b00.spi: sys_freq: 220000000
[ 0.611329] spi-nor spi0.0: mx25l12805d (16384 Kbytes)
[ 0.616585] 4 fixed-partitions partitions found on MTD device spi0.0
[ 0.622960] Creating 4 MTD partitions on "spi0.0":
[ 0.627759] 0x000000000000-0x000000030000 : "bootloader"
[ 0.634373] 0x000000030000-0x000000040000 : "config"
[ 0.640712] 0x000000040000-0x000000050000 : "factory"
[ 0.647026] 0x000000050000-0x000001000000 : "firmware"
[ 0.655747] libphy: Fixed MDIO Bus: probed
[ 0.686887] libphy: mdio: probed
[ 0.690409] mt7530 mdio-bus:1f: MT7530 adapts as multi-chip module
[ 0.699111] mtk_soc_eth 1e100000.ethernet: generated random MAC address 76:fd:43:58:e7:af
[ 0.708215] mtk_soc_eth 1e100000.ethernet eth0: mediatek frame engine at 0xbe100000, irq 22
[ 0.718597] mt7621-pci 1e140000.pcie: Parsing DT failed
[ 0.726328] NET: Registered protocol family 10
[ 0.732242] Segment Routing with IPv6
[ 0.736072] NET: Registered protocol family 17
[ 0.740834] 8021q: 802.1Q VLAN Support v1.8
[ 0.747123] gpio-export gpio-export: 1 gpio(s) exported
[ 0.752602] mt7530 mdio-bus:1f: MT7530 adapts as multi-chip module
[ 0.768423] libphy: dsa slave smi: probed
[ 0.772929] mt7530 mdio-bus:1f lan1 (uninitialized): PHY [dsa-0.0:00] driver [Generic PHY]
[ 0.782710] mt7530 mdio-bus:1f lan2 (uninitialized): PHY [dsa-0.0:01] driver [Generic PHY]
[ 0.792560] mt7530 mdio-bus:1f lan3 (uninitialized): PHY [dsa-0.0:02] driver [Generic PHY]
[ 0.802333] mt7530 mdio-bus:1f lan4 (uninitialized): PHY [dsa-0.0:03] driver [Generic PHY]
[ 0.812221] mt7530 mdio-bus:1f wan (uninitialized): PHY [dsa-0.0:04] driver [Generic PHY]
[ 0.822002] mt7530 mdio-bus:1f: configuring for fixed/rgmii link mode
[ 0.833253] DSA: tree 0 setup
[ 0.836575] rt2880-pinmux pinctrl: pcie is already enabled
[ 0.842205] mt7621-pci-phy 1e149000.pcie-phy: PHY for 0xbe149000 (dual port = 1)
[ 0.849785] mt7621-pci-phy 1e14a000.pcie-phy: PHY for 0xbe14a000 (dual port = 0)
[ 0.956887] mt7621-pci-phy 1e149000.pcie-phy: Xtal is 40MHz
[ 0.962465] mt7621-pci-phy 1e14a000.pcie-phy: Xtal is 40MHz
[ 1.067653] mt7621-pci 1e140000.pcie: pcie2 no card, disable it (RST & CLK)
[ 1.074606] mt7621-pci 1e140000.pcie: PCIE0 enabled
[ 1.079477] mt7621-pci 1e140000.pcie: PCIE1 enabled
[ 1.084356] mt7621-pci 1e140000.pcie: PCI coherence region base: 0x60000000, mask/settings: 0xf0000002
[ 1.093813] mt7621-pci 1e140000.pcie: PCI host bridge to bus 0000:00
[ 1.100176] pci_bus 0000:00: root bus resource [io 0x1e160000-0x1e16ffff]
[ 1.107043] pci_bus 0000:00: root bus resource [mem 0x60000000-0x6fffffff]
[ 1.113911] pci_bus 0000:00: root bus resource [bus 00-ff]
[ 1.119430] pci 0000:00:00.0: [0e8d:0801] type 01 class 0x060400
[ 1.125464] pci 0000:00:00.0: reg 0x10: [mem 0x00000000-0x7fffffff]
[ 1.131726] pci 0000:00:00.0: reg 0x14: [mem 0x60600000-0x6060ffff]
[ 1.138053] pci 0000:00:00.0: supports D1
[ 1.142064] pci 0000:00:00.0: PME# supported from D0 D1 D3hot
[ 1.148165] pci 0000:00:01.0: [0e8d:0801] type 01 class 0x060400
[ 1.154209] pci 0000:00:01.0: reg 0x10: [mem 0x00000000-0x7fffffff]
[ 1.160492] pci 0000:00:01.0: reg 0x14: [mem 0x60610000-0x6061ffff]
[ 1.166805] pci 0000:00:01.0: supports D1
[ 1.170815] pci 0000:00:01.0: PME# supported from D0 D1 D3hot
[ 1.178054] pci 0000:01:00.0: [14c3:7916] type 00 class 0x000280
[ 1.184139] pci 0000:01:00.0: reg 0x10: [mem 0x00000000-0x000fffff 64bit pref]
[ 1.191369] pci 0000:01:00.0: reg 0x18: [mem 0x00000000-0x00003fff 64bit pref]
[ 1.198596] pci 0000:01:00.0: reg 0x20: [mem 0x00000000-0x00000fff 64bit pref]
[ 1.205930] pci 0000:01:00.0: supports D1 D2
[ 1.210200] pci 0000:01:00.0: PME# supported from D0 D1 D2 D3hot D3cold
[ 1.216842] pci 0000:01:00.0: 2.000 Gb/s available PCIe bandwidth, limited by 2.5 GT/s x1 link at 0000:00:00.0 (capable of 4.000 Gb/s with 5 GT/s x1 link)
[ 1.231927] pci 0000:00:00.0: PCI bridge to [bus 01-ff]
[ 1.237173] pci 0000:00:00.0: bridge window [io 0x0000-0x0fff]
[ 1.243261] pci 0000:00:00.0: bridge window [mem 0x60000000-0x600fffff]
[ 1.250041] pci 0000:00:00.0: bridge window [mem 0x60100000-0x602fffff pref]
[ 1.257256] pci_bus 0000:01: busn_res: [bus 01-ff] end is updated to 01
[ 1.264055] pci 0000:02:00.0: [14c3:7915] type 00 class 0x000280
[ 1.270122] pci 0000:02:00.0: reg 0x10: [mem 0x00000000-0x000fffff 64bit pref]
[ 1.277351] pci 0000:02:00.0: reg 0x18: [mem 0x00000000-0x00003fff 64bit pref]
[ 1.284578] pci 0000:02:00.0: reg 0x20: [mem 0x00000000-0x00000fff 64bit pref]
[ 1.291907] pci 0000:02:00.0: supports D1 D2
[ 1.296177] pci 0000:02:00.0: PME# supported from D0 D1 D2 D3hot D3cold
[ 1.302817] pci 0000:02:00.0: 2.000 Gb/s available PCIe bandwidth, limited by 2.5 GT/s x1 link at 0000:00:01.0 (capable of 4.000 Gb/s with 5 GT/s x1 link)
[ 1.317904] pci 0000:00:01.0: PCI bridge to [bus 02-ff]
[ 1.323148] pci 0000:00:01.0: bridge window [io 0x0000-0x0fff]
[ 1.329238] pci 0000:00:01.0: bridge window [mem 0x60300000-0x603fffff]
[ 1.336016] pci 0000:00:01.0: bridge window [mem 0x60400000-0x605fffff pref]
[ 1.343230] pci_bus 0000:02: busn_res: [bus 02-ff] end is updated to 02
[ 1.349883] pci 0000:00:00.0: BAR 0: no space for [mem size 0x80000000]
[ 1.356494] pci 0000:00:00.0: BAR 0: failed to assign [mem size 0x80000000]
[ 1.363446] pci 0000:00:01.0: BAR 0: no space for [mem size 0x80000000]
[ 1.370051] pci 0000:00:01.0: BAR 0: failed to assign [mem size 0x80000000]
[ 1.377007] pci 0000:00:00.0: BAR 8: assigned [mem 0x60000000-0x600fffff]
[ 1.383788] pci 0000:00:00.0: BAR 9: assigned [mem 0x60100000-0x602fffff pref]
[ 1.391001] pci 0000:00:01.0: BAR 8: assigned [mem 0x60300000-0x603fffff]
[ 1.397784] pci 0000:00:01.0: BAR 9: assigned [mem 0x60400000-0x605fffff pref]
[ 1.404999] pci 0000:00:00.0: BAR 1: assigned [mem 0x60600000-0x6060ffff]
[ 1.411783] pci 0000:00:01.0: BAR 1: assigned [mem 0x60610000-0x6061ffff]
[ 1.418568] pci 0000:00:00.0: BAR 7: assigned [io 0x1e160000-0x1e160fff]
[ 1.425350] pci 0000:00:01.0: BAR 7: assigned [io 0x1e161000-0x1e161fff]
[ 1.432139] pci 0000:01:00.0: BAR 0: assigned [mem 0x60100000-0x601fffff 64bit pref]
[ 1.439884] pci 0000:01:00.0: BAR 2: assigned [mem 0x60200000-0x60203fff 64bit pref]
[ 1.447631] pci 0000:01:00.0: BAR 4: assigned [mem 0x60204000-0x60204fff 64bit pref]
[ 1.455372] pci 0000:00:00.0: PCI bridge to [bus 01]
[ 1.460335] pci 0000:00:00.0: bridge window [io 0x1e160000-0x1e160fff]
[ 1.467116] pci 0000:00:00.0: bridge window [mem 0x60000000-0x600fffff]
[ 1.473895] pci 0000:00:00.0: bridge window [mem 0x60100000-0x602fffff pref]
[ 1.481117] pci 0000:02:00.0: BAR 0: assigned [mem 0x60400000-0x604fffff 64bit pref]
[ 1.488862] pci 0000:02:00.0: BAR 2: assigned [mem 0x60500000-0x60503fff 64bit pref]
[ 1.496608] pci 0000:02:00.0: BAR 4: assigned [mem 0x60504000-0x60504fff 64bit pref]
[ 1.504347] pci 0000:00:01.0: PCI bridge to [bus 02]
[ 1.509312] pci 0000:00:01.0: bridge window [io 0x1e161000-0x1e161fff]
[ 1.516090] pci 0000:00:01.0: bridge window [mem 0x60300000-0x603fffff]
[ 1.522869] pci 0000:00:01.0: bridge window [mem 0x60400000-0x605fffff pref]
[ 1.530702] mt7530 mdio-bus:1f: Link is Up - 1Gbps/Full - flow control off
[ 1.531067] hctosys: unable to open rtc device (rtc0)
[ 1.543555] /dev/root: Can't open blockdev
[ 1.547696] VFS: Cannot open root device "(null)" or unknown-block(0,0): error -6
[ 1.555157] Please append a correct "root=" boot option; here are the available partitions:
[ 1.563496] 1f00 192 mtdblock0
[ 1.563500] (driver?)
[ 1.570031] 1f01 64 mtdblock1
[ 1.570034] (driver?)
[ 1.576562] 1f02 64 mtdblock2
[ 1.576565] (driver?)
[ 1.583082] 1f03 16064 mtdblock3
[ 1.583085] (driver?)
[ 1.589611] Kernel panic - not syncing: VFS: Unable to mount root fs on unknown-block(0,0)
[ 1.597870] Rebooting in 1 seconds..