--chroot-squashfs-options is not a valid lb_config option; the correct name is --chroot-squashfs-compression-options. Without this fix lb config aborts immediately, so the -no-xattrs flag (which prevents the "unable to read xattr id index table" boot failure) was never applied. Co-Authored-By: Claude Sonnet 4.6 <noreply@anthropic.com>