Comment 9 for bug 2049271

Right, so the overlayroot=tmpfs was something you added - not supplied by our images or our installer.

I agree that it would be nice if this worked correctly, including with the onfail option. As I say this is a valid request, and it's in our backlog. But sorry, we have to prioritise requests. This doesn't preclude those with different priorities from working on their specific cases themselves, and we'd be happy to work with you to land a fix if you have a proposed solution (presumably this would be special case handling in overlayroot= handling when nofail is in use).