Have you tried adding all the options to the args for the VM?
-fw_cfg name=opt/coreos.inst,string=yes
-fw_cfg name=opt/coreos.inst.install_dev,string=sda
-fw_cfg name=opt/coreos.inst.image_url,string=<URL>
-fw_cfg name=opt/coreos.inst.ignition_url,string=http://example.com/config.ign
-fw_cfg...