Home Assistant OS (HA OS) VM vs system container in Incus

To import as a container, it needs to be dealing with a mount filesystem or set of filesystems so it can transfer individual files. If all you have is a compressed full disk image like you have here, this only can be imported as a VM.

if i understand correclty, i could import it as a vm, run the tool inside to migrate it to a container?

Possibly. Home Assistant runs a whole bunch of containers, so it’s not a very good candidate for running nicely as a container itself.

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thank you very much for your time