To Reproduce Steps to reproduce the behavior:

1. Download rhel-ai-intel-1.3-1732904527-x86_64.iso from https://downloads.corp.stage.redhat.com/internal/product/932/ver=1.3/rhel---9/1.3/rhelai-1.3-for-rhel-9-x86_64-isos/x86_64/cs-downloads
2. Create a VM with it and proceed with installation
3. Installation fails with message: 

   The following error occurred while installing the payload. This is a fatal error and installation will be aborted.
   The command 'ostree container image deploy --sysroot=/mnt/sysimage --image=/run/install/repo/container --transport=oci --no-signature-verification' exited with the code 1.
   

    

1. Reproduced this on 2 Physical systems ( Gaudi3 system at Intel, Gaudi3 system at Supermicro and Libvirt VM ) ( slack thread: https://redhat-internal.slack.com/archives/C07TTH1KGA1/p1733144702785119 )
2. 

Expected behavior

• <your text here>

Screenshots

• Attached Image 

Device Info (please complete the following information):

• Hardware Specs: [e.g. Apple M2 Pro Chip, 16 GB Memory, etc.]
• OS Version: [e.g. Mac OS 14.4.1, Fedora Linux 40]
• Python Version: [output of \\{{{}python --version{}}}]
• InstructLab Version: [output of \\{{{}ilab --version{}}}]

Additional context

• <your text here>
• ...