Podman Machine Init failed on Windows

[blueelvis]

Issue Description

After doing a fresh installation of Podman on Windows 10, I typed in podman machine init and got the following -

PS C:\Users\bluee> podman machine init
Downloading VM image: fedora-podman-amd64-v36.0.142.tar.xz: done
Extracting compressed file
Importing operating system into WSL (this may take a few minutes on a new WSL install)...
The requested operation could not be completed due to a virtual disk system limitation.  Virtual hard disk files must be uncompressed and unencrypted and must not be sparse.
Error: the WSL import of guest OS failed: exit status 0xffffffff

Steps to reproduce the issue

Steps to reproduce the issue

1. Install Podman on Windows 10 having WSL2.
2. Run podman machine init

Describe the results you received

Got the following logs -

PS C:\Users\bluee> podman machine init
Downloading VM image: fedora-podman-amd64-v36.0.142.tar.xz: done
Extracting compressed file
Importing operating system into WSL (this may take a few minutes on a new WSL install)...
The requested operation could not be completed due to a virtual disk system limitation.  Virtual hard disk files must be uncompressed and unencrypted and must not be sparse.
Error: the WSL import of guest OS failed: exit status 0xffffffff

PS C:\Users\bluee> podman machine init --log-level trace
time="2023-03-19T12:41:40+05:30" level=info msg="C:\\Program Files\\RedHat\\Podman\\podman.exe filtering at log level trace"
Extracting compressed file
Importing operating system into WSL (this may take a few minutes on a new WSL install)...
time="2023-03-19T12:42:00+05:30" level=debug msg="Running command: wsl [--import podman-machine-default C:\\Users\\bluee\\.local\\share\\containers\\podman\\machine\\wsl\\wsldist\\podman-machine-default C:\\Users\\bluee\\.local\\share\\containers\\podman\\machine\\wsl\\podman-machine-default_fedora-podman-amd64-v36.0.142.tar --version 2]"
The requested operation could not be completed due to a virtual disk system limitation.  Virtual hard disk files must be uncompressed and unencrypted and must not be sparse.
Error: the WSL import of guest OS failed: exit status 0xffffffff
time="2023-03-19T12:42:02+05:30" level=debug msg="Shutting down engines"

Describe the results you expected

Podman machine is created in WSL2.

podman info output

PS C:\Users\bluee> podman info
Cannot connect to Podman. Please verify your connection to the Linux system using `podman system connection list`, or try `podman machine init` and `podman machine start` to manage a new Linux VM
Error: unable to connect to Podman socket: Get "http://d/v4.4.2/libpod/_ping": dial unix ///run/podman/podman.sock: connect: An invalid argument was supplied.

Podman in a container

No

Privileged Or Rootless

Rootless

Upstream Latest Release

Yes

Additional environment details

Microsoft Windows 10 Pro 10.0.19045 N/A Build 19045

Additional information

I followed this comment and it fixed the issue - microsoft/WSL#4103 (comment)

The folder I configured was - C:\Users\bluee\.local\share\containers\podman\machine\wsl

[github-actions]

A friendly reminder that this issue had no activity for 30 days.

[rhatdan]

@n1hility PTAL

[n1hility]

@blueelvis is there any chance you had enabled NTFS compression on your home directory?

[github-actions]

A friendly reminder that this issue had no activity for 30 days.

[n1hility]

Closing due to inactivity, feel free to reopen or create a new issue if you have further info. thanks!