The actual busy-config file for both x86 and x86_64 does not support LFS, and you can't create a .squashfs file >2GB without that. So I suggest to change: #CONFIG_LFS is not set to: CONFIG_LFS=y in: /usr/share/genkernel/%%ARCH%%/busy-config tested on x86 and AMD64.
*** This bug has been marked as a duplicate of 152881 ***
Dupe.