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Here is my inputs to boot the Linux Image in TrueNAS Scale as a Virtual Machine.
TrueNAS SCALE VM Setup Using .qcow2.xz Image (Surefire Method)

📁 Step 1: Upload the Image
Upload your compressed .qcow2.xz image to a directory on your TrueNAS system, such as:
/haos_ova-15.2.qcow2.xz

📦 Step 2: Decompress the Image
Use the shell or SSH to decompress the .xz file:

xz -d /haos_ova-15.2.qcow2.xz_

This will produce:
/haos_ova-15.2.qcow2

💾 Step 3: Create a ZVol
Go to Storage > Datasets > [Your Pool] > [Your ZVol Dataset]
Click Add Zvol
Set:
Name: hassos_disk
Size: e.g., 50 GiB (match or exceed the virtual size of the .qcow2)
Click Save

🔄 Step 4: Convert .qcow2 to ZVol
Run the following command in the shell:

qemu-img convert -f -p qcow2 -O raw /haos_ova-15.2.qcow2 /dev/zvol///hassos_disk_

This writes the image directly into the ZVol.

🖥️ Step 5: Create the Virtual Machine
Go to Virtualization > Virtual Machines > Add
Set:
Name: HomeAssistant
OS: Linux or Other
Boot Method: UEFI
CPU Mode: Host Passthrough
vCPUs: e.g., 2
Memory: e.g., 2048 MiB

💽 Step 6: Attach the ZVol as a Disk
Under Disks, click Add
Set:
Type: Disk
Zvol: hassos_disk
Mode: AHCI (recommended for compatibility)

🌐 Step 7: Add a Network Interface
Under NIC, click Add
Set:
Adapter Type: VirtIO
Attach NIC: your bridge or physical NIC (e.g., br0)

🚀 Step 8: Start the VM
Save the VM
Click Start

Use Display or VNC to access the console and verify boot

URL

https://www.home-assistant.io/installation/alternative/

Version

2025.6.1

Additional information

Instructions are tried at tested on "ElectricEel-24.10.2.2"