I am a recent convert to Mac/Linux from Windows so can't help much with the error. What I can do is, if you DM me a shared cloud location, I can drop my build of vftool along with the initrd file and kernel that you can use with the image file mike boss has provided -
https://github.com/mibosshard/SimpleVM/releases/download/20201128/SimpleVM_Ubuntu.zip
Put the image and the files I provide in the same directory and just run the following from terminal -
./vftool -k vmlinuz -i initrd -d image -m 4096 -a "root=/dev/vda console=hvc0"
Details on how to expand the image -
https://superuser.com/questions/693158/can-i-expand-the-size-of-a-file-based-disk-image (the accepted answer). Skip the first step since you already have the image and you don't need to create it.
For the step '# dd if=/dev/zero bs=1M count=400 >> ./binary.img' this is to expand by 400MB. Change 400 to a size you want. I went with 100000 (~100 GB)
To resize you either need a linux machine or windows with WSL. Another option is to share a folder on your MacBook, mount it in Linux (google mounting smb share in Linux) and then run through the steps to expand the image. Create a copy of the image file so you do not manipulate the image file that is running the Linux VM.