reboot due to degraded hardware but instance fail to start with 1/2 status check failed

I received notice that there is degrade of hardware and I reboot my EC2 as requested.

Yet instance fail to start, with 1/2 status check failed.

It shows " Instance reachability check failed"

Below is extracted from System Log

type=1404 audit(1667406588.040:2): enforcing=1 old_enforcing=0 auid=4294967295 ses=4294967295

Unable to load SELinux Policy. Machine is in enforcing mode. Halting now.

Kernel panic - not syncing: Attempted to kill init!