GRUB not detecting Arch Linux Arm

[andiling]

I am using generic ALARM on a VPS.

Recently was an update to grub-2:2.14rc1.r54.g29f3131a-2 which advises to run update-grub. So I was running grub-install and grub-mkconfig -o /boot/grub/grub.cfg realizing that grub doesn't detect the system/kernel ending up with no option to boot regularly. It is not an issue of the latest grub, downgrading has the same result. I guess grub.cfg was never touched after installation so grub-mkconfig already may not work for some time.
Maybe it is not able to detect Image.gz.
The relevant (working) entry in grub.cfg is

menuentry "Arch Linux" {
set gfxpayload="keep"
search --fs-uuid --no-floppy --set=root 12E0-9970
linux /Image.gz root=PARTUUID=3a7273d2-02e6-4190-abd1-818004d753eb rootfstype=ext4 rw rootflags=rw,relatime
initrd /initramfs-linux.img

}

Is there a solution except adding it to 40_custom and having it included statically?