Kernel squashfs driver fails with "unable to read xattr id index table" when the squashfs contains POSIX ACL xattrs (system.posix_acl_*) written by mksquashfs as unrecognised entries. This caused every built ISO to drop to an initramfs shell at boot. Add -no-xattrs to mksquashfs options so xattrs are stripped at build time. xattrs are not needed in a live read-only rootfs. Co-Authored-By: Claude Sonnet 4.6 <noreply@anthropic.com>