"base-installer: error: /cdrom/install/filesystem.squashfs has failed to be mounted as squashfs." is seen on trusty server instalaltions

[Para Siva]

This error is seen on both amd64 and i386 trusty server installations. Started from 20140814 when it looks like the trusty images started being produced after .1 release. Manual VM installations also failed with similar error.

Aug 21 05:59:22 debconf: <-- 0 multiselect backup progresscancel align escape plugin-detect-keyboard plugin-terminal
Aug 21 05:59:22 debconf: --> GET anna/retriever
Aug 21 05:59:22 debconf: <-- 0 cdrom-retriever
Aug 21 05:59:22 base-installer: error: /cdrom/install/filesystem.squashfs has failed to be mounted as squashfs.
Aug 21 05:59:22 main-menu[2943]: (process:16488): unknown udeb squashfs-modules
Aug 21 05:59:22 main-menu[2943]: (process:16488): modprobe: ERROR: could not open builtin file '/lib/modules/3.13.0-32-generic/modules.builtin.bin'
Aug 21 05:59:22 main-menu[2943]: (process:16488): modprobe: FATAL: Module squashfs not found.
Aug 21 05:59:22 main-menu[2943]: (process:16488): modprobe: ERROR: could not open builtin file '/lib/modules/3.13.0-32-generic/modules.builtin.bin'
Aug 21 05:59:22 main-menu[2943]: (process:16488): mount: mounting /dev/loop0 on /mnt failed: No such device
Aug 21 05:59:22 main-menu[2943]: WARNING **: Configuring 'live-installer' failed with error code 1
Aug 21 05:59:22 debconf: --> GET debconf/priority
Aug 21 05:59:22 debconf: <-- 0 critical
Aug 21 05:59:22 main-menu[2943]: WARNING **: Menu item 'live-installer' failed.
Aug 21 05:59:22 debconf: --> SETTITLE debian-installer/live-installer/title
Aug 21 05:59:22 debconf: <-- 0 OK
Aug 21 05:59:22 debconf: --> CAPB
Aug 21 05:59:22 debconf: <-- 0 multiselect backup progresscancel align escape plugin-detect-keyboard plugin-terminal
Aug 21 05:59:22 debconf: --> METAGET debian-installer/live-installer/title Description
Aug 21 05:59:22 debconf: <-- 0 Install the system
Aug 21 05:59:22 debconf: --> SUBST debian-installer/main-menu/item-failure ITEM Install the system
Aug 21 05:59:22 debconf: Adding [ITEM] -> [Install the system]
Aug 21 05:59:22 debconf: <-- 0
Aug 21 05:59:22 debconf: --> INPUT critical debian-installer/main-menu/item-failure
Aug 21 05:59:22 debconf: <-- 0 question will be asked
Aug 21 05:59:22 debconf: --> GO

https://jenkins.qa.ubuntu.com/job/trusty-server-i386-smoke-default/184/ is one of the impacted smoke tests.

To reproduce,
Start the installation with the iso and proceed with default selections passing partitioning disks section.
Soon after the partition complete, this error is seen.

[Colin Watson (cjwatson)]

Fixed a while back by updating d-i to current kernel versions. The tests look healthier now.