Yes, u-boot works fine on our device and the micro-SD is dev0. I have been digging deeper and found that the kernel is calling the panic function with a message of "Kernel panic - not syncing: Attempted to kill init!".
The cause of the kernel panic occurs when the function kernel_thread_helper is called from the function ret_slow_syscall. The assembly code is here:
8003CFA0 f10c0080 CPSID i
8003CFA4 e5991000 LDR R1,[R9]
8003CFA8 e31100ff TST R1,#000000ff
8003CFAC 1afffff0 BNE 8003cf74
8003CFB0 e59d1040 LDR R1,[SP,#040]
8003CFB4 e5bde03c LDR LR,[SP,#03c]!
8003CFB8 e16ff001 MSR SPSR_cxsf,R1
8003CFBC f57ff01f CLREX
8003CFC0 e95d7fff LDMEA SP,{R0-R12,SP,LR}^
8003CFC4 e1a00000 NOP
8003CFC8 e28dd00c ADD SP,SP,#0000000c
8003CFCC e1b0f00e MOVS PC,LR --> This instruction causes panic
Have no idea why this is happening? I have been digging through the Kernel Configuration menus but haven't seen anything suspicious yet.