Is blsconfig enabled or disabled in your vm /etc/default/grub? If enabled then your commandline options have not been added to the /boot/loader/entries/ files. I discovered this the other day. Your grub2-mkconfig should contain this option to update those entries:
--update-bls-cmdline
This appears to be a change introduced in rl9.3 that alters the prior behavior of grub2-mkconfig.
The last post to this thread provides a link to RH 9.3 changes:
https://forums.rockylinux.org/t/issue-in-grubby-while-baking-new-ami-using-kernal-5-14-0-362-13-1-el9-3-x86-64/12549/4