New dracut based gentoo minimal livecds do not use cdupdate.sh
cdupdate.sh is only run when using genkernel.
dracut instead looks for a /updates and/or /run/initramfs/live/updates directory:
https://github.com/dracutdevs/dracut/blob/master/modules.d/90dmsquash-live/apply-live-updates.sh
The contents of the /updates will be copied onto the live file systems root.
So for example the bashrc path should now be updates/root/.bashrc.
If you want some more concrete example I've combined the iPXE repo and this repo into a derivative project: https://projects.blender.org/ZedDB/gentoo-pxe-builder
I just wanted to contribute back here so you don't have to figure out what to change with dracut. :)
Do you know if this means that the minimal cd now is systemd instead of openrc? If it is, that is actually a worse bug IMO (and might mean I will pin to an older minimal ISO untill fixed)
No, it is still using OpenRC. :)
They just changed how they build the kernel and initramfs. Now they use the sys-kernel/gentoo-kernel package for the majority (or perhaps even all?) their live images.
From what I understand genkernel was unmaintained and kinda dead, so for the sys-kernel/gentoo-kernel and sys-kernel/gentoo-kernel-bin packages they are using dracut to create the initramfs.
We probably just want to move to iPXE based boot instead and drop the iso scripts. https://github.com/NiKiZe/Gentoo-iPXE/issues/11
But even then these updates, somehow, is probably needed.