This is what worked for me. I did a clean install of Catalina. Once installed and working good, I downloaded the Big Sur public beta profile. I installed that and installed the latest Public beta. Once installed and working properly, I then downloaded and installed the Big Sur Developer Beta profile and installed Big Sur beta 5. It started up perfectly with no kernel panic.
Rnc1223
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This is what worked for me. I too was having the kernel panic issue but I was able to get around it. I did a clean install of Catalina. Once Catalina was installed, I then installed the Big Sur Public beta profile and installed Big Sur Public Beta. Once that installed and everything worked fine, I installed the Big Sur Developer Beta and installed that. It installed Beta 5 and the boot issues were gone. It is working perfectly.
I have the same issue on a MacBook Air 2017. I was able to do a restore and it reverts back to beta 4 without losing anything