Kernel install is not creating entries for initrd when this is set on /etc/default/grub:

   GRUB_ENABLE_BLSCFG="false"
   GRUB_DISABLE_SUBMENU="true"

See, this is the entry created for 6.11.7-300, which doesn't boot due to the lack of initrd:

menuentry 'Fedora Linux (6.11.7-300.fc41.x86_64) 41 (MATE-Compiz)' --class fedora --class gnu-linux --class gnu --class os --unrestricted $menuentry_id_option 'gnulinux-6.11.7-300.fc41.x86_64-advanced-55e1c0e9-a0c0-4fa7-a5d2-b7309fe186db' {
        load_video
        set gfxpayload=keep
        insmod gzio
        insmod part_gpt
        insmod ext2
        search --no-floppy --fs-uuid --set=root 2162090d-f8fa-4f11-8638-4572bc505aa4
        echo    'Loading Linux 6.11.7-300.fc41.x86_64 ...'
        linux   /vmlinuz-6.11.7-300.fc41.x86_64 root=/dev/mapper/eta-root ro rd.lvm.lv=eta/root rhgb quiet selinux=0
}

Manually running grub2-mkconfig works:

Found linux image: /boot/vmlinuz-6.11.7-300.fc41.x86_64
Found initrd image: /boot/initramfs-6.11.7-300.fc41.x86_64.img
menuentry 'Fedora Linux (6.11.7-300.fc41.x86_64) 41 (MATE-Compiz)' --class fedora --class gnu-linux --class gnu --class os --unrestricted $menuentry_id_option 'gnulinux-6.11.7-300.fc41.x86_64-advanced-55e1c0e9-a0c0-4fa7-a5d2-b7309fe186db' {
	load_video
	set gfxpayload=keep
	insmod gzio
	insmod part_gpt
	insmod ext2
	search --no-floppy --fs-uuid --set=root 2162090d-f8fa-4f11-8638-4572bc505aa4
	echo	'Loading Linux 6.11.7-300.fc41.x86_64 ...'
	linux	/vmlinuz-6.11.7-300.fc41.x86_64 root=/dev/mapper/eta-root ro rd.lvm.lv=eta/root rhgb quiet selinux=0 
	echo	'Loading initial ramdisk ...'
	initrd	/initramfs-6.11.7-300.fc41.x86_64.img
}

It sounds to me that the issue is inside the Kernel install script called during Kernel package installation.

It is really annoying having to manually run grub2-mkconfig every time I upgrade Fedora's Kernel.

Ps.: such bug appeared on late Fedora 40 Kernels.