Acronis Backup: Linux bootable media fails with "Kernel panic - VFS: Unable to mount root fs on unknow-block(1,0)"

Symptoms

You downloaded the bootable media to use it for recovery. You create an empty VM and start it with the ISO image. 

You receive this error:
Unable to load initial ramdisk.

After pressing Enter, you receive this error:

Cause

The issue can be caused by one of these two reasons: