The kernel/initrd come from a regular OCI container image — there's no separate VM image format. Any OCI image containing /boot/vmlinux (and optionally /boot/initramfs.cpio.gz) works as a kernel image.
And if they don't have a kernel? You just specify kernel + initrd?
I don't think I've ever seen a kernel or initrd in a container image. The whole point of containers is not to duplicate the kernel, and you definitely don't need an initial ram disk since you already have a running operating system.