I was trying to add few additional kernel parameters like ignition.firstboot ip=dhcp ignition.config.url=http:example.com/ignition/config.ign before first boot by editing the grub menu, but it is failing.
When I try to do the same after the first boot, it is working fine, and the changes are also applied.
I wanted to know is it possible to edit the kernel arguments at first boot
That leaves of course a lot to guess to others about what you exactly did. But in Leap (and Tumblweed), one would use YaST > System > Bootloader and then the Tab Kernelparameters to change/add/remove them.