Ionel

From the size diference it looks like the bitstream was not included.
Use --fpga  for package command: `petalinux-package --boot --fsbl --fpga --u-boot --force`

Thanks Lonel

Actually, I am trying to understand the differences between Yocto Project and Petalinux. I am asked to use Yocto Project. There is a boot.bin file generated by Yocto as you can see from the screenshot I added. I copied it to the sd card's boot partition. But I am kinda suspicious about boot.bin. I found another post about the same problem but for zc702: https://stackoverflow.com/questions/68098124/zc702-not-booting-up-my-yocto-created-build. 

Welcome to the forum.
It looks like you disabled or did not add eth0 in your hardware design. Check if &gem0 in <PROJECT>/components/plnx_workspace/device-tree/device-tree/pcw.dtsi exists and status="okay"; for this node
 

OK, so there's new security settings for u-boot. To get this to work, you have to run petalinux-config -c u-boot, then go to:
Environment->Enable overwriting environment
hit the space bar to enable environment overwrite by uEnv.txt

If you want to use version 2022.1 of petalinux/vivado you should know there is no bsp yet.
However it is not that hard to create a basic design in vivado then create a petalinux project using zynq template acording to ug1144. Import your hardware design(.xsa file) using petalinux configure command.
board specific configurations can be found for erliear versions of vivado/petalinux here: https://github.com/Digilent/Zybo-Z7-OS  you can use branch 20/Petalinux/next (petalinux 2020.1) as a reference.
 

Check this https://github.com/Digilent/Zybo-Z7-OS  and  try branch 20/Petalinux/next.
If you choose to use this updated version then after a succesful build you can replace hardware desciption with yours also make sure to change the device tree to match your design.

Try /usr/bin
vi should be there
you can add nano with petalinux-config -c rootfs
 

NOTE: If you edit files in initramfs on reboot all changes will be lost