Can you verify in your initramfs that the udev rules exist, and that the "watershed" binary is available? From you booted system, what is the output of "ls -l /etc/udev/rules.d/" (perhaps something old has snuck in and is messing with stuff)? And maybe even "ls -l /lib/udev/rules.d/" for good measure too.
Can you verify in your initramfs that the udev rules exist, and that the "watershed" binary is available? From you booted system, what is the output of "ls -l /etc/udev/rules.d/" (perhaps something old has snuck in and is messing with stuff)? And maybe even "ls -l /lib/udev/rules.d/" for good measure too.