Azure Ubuntu 22 LTS VM not booting after Selinux is enabled

I am trying to deploy a new Ubuntu 22LTS VM in Azure. The VM deploy works well, however when I enable Selinux and retart the machine I get the following errors:

[    6.173474] FAT-fs (sda15): IO charset iso8859-1 not found
[FAILED] Failed to mount /boot/efi.
See 'systemctl status boot-efi.mount' for details.
[DEPEND] Dependency failed for Local File Systems.
[  OK  ] Stopped Dispatch Password …ts to Console Directory Watch.
[  OK  ] Started Emergency Shell.
[  OK  ] Reached target Emergency Mode.
         Starting Create final runt…dir for shutdown pivot root...
         Starting Tell Plymouth To Write Out Runtime Data...
         Starting Create Volatile Files and Directories...
[  OK  ] Finished Create final runt…e dir for shutdown pivot root.
[  OK  ] Finished Tell Plymouth To Write Out Runtime Data.
[  OK  ] Finished Create Volatile Files and Directories.
         Starting Record System Boot/Shutdown in UTMP...
[  OK  ] Finished Record System Boot/Shutdown in UTMP.
[  OK  ] Reached target System Initialization.
         Starting Relabel all filesystems...
[FAILED] Failed to start Relabel all filesystems.
See 'systemctl status selinux-autorelabel.service' for details.

I used the following commands to enable selinux:

sudo apt install policycoreutils selinux-utils selinux-basics
sudo selinux-activate
sudo selinux-config-enforcing 

and also uninstalled:

sudo apt-get remove apparmor -y

I am not selinux expert so I do not know if any booleans or any file context needs to be updated.

Thanks, B