Hello,
two causes:
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Check that Red Hat KExec is associated with your host, if it’s not associated then Foreman falls back to reboot instead kexec.
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Your hardware is not kexec friendly, this happens quite a lot unfortunately. We found that kexec workflow is very buggy. Make sure you have the latest FDI image which blacklists some problematic kernel drivers. Also recent findings are that adding “nokaslr” kernel command line option to Red Hat KExec template (when booting discovery) helps.
https://projects.theforeman.org/issues/26127
Try both and report back.