The iso is able to autodetect the device and find stage2, but when they are written to USB via dd it needs to know where to find the install media.
grub2-2.00-5 has changed.
live media isn't exactly the same as the Anaconda install media. Right now this amounts to needing a root= cmdline argument but in the future there may be other differences. This also reverts 5437557846 on the new copies of the templates.
5437557846