Your `efibootmgr -v` output indicates the #3 entry will be picked up
first, which is the fall back boot entry for Systemd-boot. Please
change the order with `efibootmgr -o` option. You should also enter
the UP2 BIOS to make sure the ACRN boot entry is the first option.
I did that already and did not work (see my original post), the working
trick was to disable the boot entry 0003.