It causes systemd to blow up, but you could try doing your microcode update from initrd. Or just get rid of systemd, run your microcode update, and make some Halloween jello shots to take to the no-systemd party (it's going to be even crazier, this year).
If the kernel itself doesn't boot, installing the microcode package may not help. It only helps if the problem only occurs after the point at which the kernel loads the microcode. Hopefully that's early enough for most cases.
Indeed. At least the Intel driver does it so early in the boot process that the "microcode updated" message is literally the first line in dmesg on a couple of systems I've bothered to check.
You'll need to compile a kernel which does not depend on the RDRAND instruction as a source of randomness.