I have added "set -x" just under "set -e" in the script. Here are the following results:

kcrpl@raspberrypi-4-kcrpl:/usr/share/initramfs-tools/hooks$ sudo update-initramfs -u
+ sudo update-initramfs -u
update-initramfs: Generating /boot/initrd.img-6.5.0-1005-raspi
+ PREREQ=
+ prereqs
+ echo
+ exit 0
+ PREREQ=
+ . /usr/share/initramfs-tools/hook-functions
+ [ -x /usr/sbin/dhcpcd ]
+ copy_exec /usr/sbin/dhcpcd
+ local src target x nonoptlib ret
+ src=/usr/sbin/dhcpcd
+ target=/usr/sbin/dhcpcd
+ copy_file binary /usr/sbin/dhcpcd /usr/sbin/dhcpcd
+ local type src target link_target
+ type=binary
+ src=/usr/sbin/dhcpcd
+ target=/usr/sbin/dhcpcd
+ [ -f /usr/sbin/dhcpcd ]
+ [ -d /var/tmp/mkinitramfs_FoHhvu//usr/sbin/dhcpcd ]
+ [ -e /var/tmp/mkinitramfs_FoHhvu//usr/sbin/dhcpcd ]
+ mkdir -p /var/tmp/mkinitramfs_FoHhvu//usr/sbin
+ [ -h /usr/sbin/dhcpcd ]
+ [ n = y ]
+ cp -pP /usr/sbin/dhcpcd /var/tmp/mkinitramfs_FoHhvu//usr/sbin/dhcpcd
+ env --unset=LD_PRELOAD ldd /usr/sbin/dhcpcd
+ sed -e
                /\//!d;
                /linux-gate/d;
                /=>/ {s/.*=>[[:blank:]]*\([^[:blank:]]*\).*/\1/};
                s/[[:blank:]]*\([^[:blank:]]*\) (.*)/\1/
+ echo /lib/aarch64-linux-gnu/libcrypto.so.3
+ sed -e s#/lib/\([^/]*/\)\?\(tls\|i686\|sse2\|neon\|vfp\).*/\(lib.*\)#/lib/\1\3#
+ nonoptlib=/lib/aarch64-linux-gnu/libcrypto.so.3
+ echo /lib/aarch64-linux-gnu/libcrypto.so.3
+ sed -e s#-linux-gnu/\(tls\|i686\|sse2\|neon\|vfp\).*/\(lib.*\)#-linux-gnu/\2#
+ nonoptlib=/lib/aarch64-linux-gnu/libcrypto.so.3
+ [ -e /lib/aarch64-linux-gnu/libcrypto.so.3 ]
+ x=/lib/aarch64-linux-gnu/libcrypto.so.3
+ copy_file binary /lib/aarch64-linux-gnu/libcrypto.so.3
+ local type src target link_target
+ type=binary
+ src=/lib/aarch64-linux-gnu/libcrypto.so.3
+ target=/lib/aarch64-linux-gnu/libcrypto.so.3
+ [ -f /lib/aarch64-linux-gnu/libcrypto.so.3 ]
+ [ -d /var/tmp/mkinitramfs_FoHhvu//lib/aarch64-linux-gnu/libcrypto.so.3 ]
+ target=/usr/lib/aarch64-linux-gnu/libcrypto.so.3
+ [ -e /var/tmp/mkinitramfs_FoHhvu//usr/lib/aarch64-linux-gnu/libcrypto.so.3 ]
+ return 1
+ ret=1
+ [ 1 = 1 ]
+ echo /lib/aarch64-linux-gnu/libc.so.6
+ sed -e s#/lib/\([^/]*/\)\?\(tls\|i686\|sse2\|neon\|vfp\).*/\(lib.*\)#/lib/\1\3#
+ nonoptlib=/lib/aarch64-linux-gnu/libc.so.6
+ echo /lib/aarch64-linux-gnu/libc.so.6
+ sed -e s#-linux-gnu/\(tls\|i686\|sse2\|neon\|vfp\).*/\(lib.*\)#-linux-gnu/\2#
+ nonoptlib=/lib/aarch64-linux-gnu/libc.so.6
+ [ -e /lib/aarch64-linux-gnu/libc.so.6 ]
+ x=/lib/aarch64-linux-gnu/libc.so.6
+ copy_file binary /lib/aarch64-linux-gnu/libc.so.6
+ local type src target link_target
+ type=binary
+ src=/lib/aarch64-linux-gnu/libc.so.6
+ target=/lib/aarch64-linux-gnu/libc.so.6
+ [ -f /lib/aarch64-linux-gnu/libc.so.6 ]
+ [ -d /var/tmp/mkinitramfs_FoHhvu//lib/aarch64-linux-gnu/libc.so.6 ]
+ target=/usr/lib/aarch64-linux-gnu/libc.so.6
+ [ -e /var/tmp/mkinitramfs_FoHhvu//usr/lib/aarch64-linux-gnu/libc.so.6 ]
+ return 1
+ ret=1
+ [ 1 = 1 ]
+ echo /lib/ld-linux-aarch64.so.1
+ sed -e s#/lib/\([^/]*/\)\?\(tls\|i686\|sse2\|neon\|vfp\).*/\(lib.*\)#/lib/\1\3#
+ nonoptlib=/lib/ld-linux-aarch64.so.1
+ echo /lib/ld-linux-aarch64.so.1
+ sed -e s#-linux-gnu/\(tls\|i686\|sse2\|neon\|vfp\).*/\(lib.*\)#-linux-gnu/\2#
+ nonoptlib=/lib/ld-linux-aarch64.so.1
+ [ -e /lib/ld-linux-aarch64.so.1 ]
+ x=/lib/ld-linux-aarch64.so.1
+ copy_file binary /lib/ld-linux-aarch64.so.1
+ local type src target link_target
+ type=binary
+ src=/lib/ld-linux-aarch64.so.1
+ target=/lib/ld-linux-aarch64.so.1
+ [ -f /lib/ld-linux-aarch64.so.1 ]
+ [ -d /var/tmp/mkinitramfs_FoHhvu//lib/ld-linux-aarch64.so.1 ]
+ target=/usr/lib/ld-linux-aarch64.so.1
+ [ -e /var/tmp/mkinitramfs_FoHhvu//usr/lib/ld-linux-aarch64.so.1 ]
+ return 1
+ ret=1
+ [ 1 = 1 ]
+ copy_exec /usr/lib/dhcpcd/dhcpcd-run-hooks
+ local src target x nonoptlib ret
+ src=/usr/lib/dhcpcd/dhcpcd-run-hooks
+ target=/usr/lib/dhcpcd/dhcpcd-run-hooks
+ copy_file binary /usr/lib/dhcpcd/dhcpcd-run-hooks /usr/lib/dhcpcd/dhcpcd-run-hooks
+ local type src target link_target
+ type=binary
+ src=/usr/lib/dhcpcd/dhcpcd-run-hooks
+ target=/usr/lib/dhcpcd/dhcpcd-run-hooks
+ [ -f /usr/lib/dhcpcd/dhcpcd-run-hooks ]
+ return 2
+ return 1
E: /usr/share/initramfs-tools/hooks/dhcpcd failed with return 1.
update-initramfs: failed for /boot/initrd.img-6.5.0-1005-raspi with 1.
kcrpl@raspberrypi-4-kcrpl:/usr/share/initramfs-tools/hooks$


Just some additional info. For some reason after upgrading to 22.10 dhcpcd cannot start however DHCP still seems to work. Attaching output from systemctl status below:

kcrpl@raspberrypi-4-kcrpl:~$ sudo systemctl status dhcpcd
[sudo] password for kcrpl:
× dhcpcd.service - DHCP Client Daemon on all interfaces
     Loaded: loaded (/lib/systemd/system/dhcpcd.service; enabled; preset: enabled)
     Active: failed (Result: exit-code) since Sat 2023-10-14 18:30:37 CEST; 1 day 17h ago
       Docs: man:dhcpcd(8)
        CPU: 166ms

Oct 14 18:30:36 raspberrypi-4-kcrpl systemd[1]: Starting dhcpcd.service - DHCP Client Daemon on all int>
Oct 14 18:30:37 raspberrypi-4-kcrpl dhcpcd[907]: dhcpcd-10.0.2 starting
Oct 14 18:30:37 raspberrypi-4-kcrpl dhcpcd[907]: dhcpcd_fork_cb: truncated read 0 (expected 4)
Oct 14 18:30:37 raspberrypi-4-kcrpl systemd[1]: dhcpcd.service: Control process exited, code=exited, st>
Oct 14 18:30:37 raspberrypi-4-kcrpl systemd[1]: dhcpcd.service: Failed with result 'exit-code'.
Oct 14 18:30:37 raspberrypi-4-kcrpl systemd[1]: Failed to start dhcpcd.service - DHCP Client Daemon on >
lines 1-12/12 (END)


Thank you for your time.