No tty with Debian 8 on Nopek CVLite


I’m trying to replace buildroot that came with devkit with Debian 8 using the same kernel and uboot/preloader. Everything boots just fine except there is no login prompt on ttyS0.
Here is a boot log -

I can “break” booting even more - add:

/dev/mmcblk0p2 /boot vfat defaults 0 0

to fstab which cause systemd to fail. Then I can login into rescue shell and mount boot manually and navigate through the system.

Any ideas what I’ve done wrong?
Thanks in advance.

Silly me!