Okay, so a little more testing.
Create a new VM - 9997 - Ubuntu 26.04 LTS (same node), different datastore - NetApp backed.
qm create 9997 \
--name CS-Module-661982-SDI-2026-2027-Ubuntu26 \
--memory 4096 \
--cores 2 \
--cpu x86-64-v4 \
--bios ovmf \
--machine q35 \
--ostype l26 \
--scsihw virtio-scsi-pci \
--scsi0 nfs_datastore7:40,format=qcow2 \
--efidisk0 nfs_datastore7:1,format=qcow2,efitype=4m,pre-enrolled-keys=1 \
--scsi1 nfs_datastore7:cloudinit \
--net0 virtio,bridge=vmbr2975 \
--ipconfig0 ip=dhcp \
--agent enabled=1 \
--vga std \
--tags linux,production,sdi-students,template
# Attach ISO:
qm set 9997 --ide2 local:iso/ubuntu-26.04.1-live-server-amd64.iso,media=cdrom
qm set 9997 --boot "order=ide2;scsi0"
qm start 9997
Formatting '/mnt/pve/nfs_datastore7/images/9997/vm-9997-disk-0.qcow2', fmt=qcow2 cluster_size=65536 extended_l2=off preallocation=metadata compression_type=zlib size=540672 lazy_refcounts=off refcount_bits=16
transferred 0.0 B of 528.0 KiB (0.00%)
transferred 528.0 KiB of 528.0 KiB (100.00%)
transferred 528.0 KiB of 528.0 KiB (100.00%)
INFO: reading raw edk2 varstore from /usr/share/pve-edk2-firmware//OVMF_VARS_4M.ms.fd
INFO: var store range: 0x64 -> 0x40000
efidisk0: successfully created disk 'nfs_datastore7:9997/vm-9997-disk-0.qcow2,efitype=4m,ms-cert=2023k,pre-enrolled-keys=1,size=528K'
Formatting '/mnt/pve/nfs_datastore7/images/9997/vm-9997-disk-1.qcow2', fmt=qcow2 cluster_size=65536 extended_l2=off preallocation=metadata compression_type=zlib size=42949672960 lazy_refcounts=off refcount_bits=16
scsi0: successfully created disk 'nfs_datastore7:9997/vm-9997-disk-1.qcow2,size=40G'
Formatting '/mnt/pve/nfs_datastore7/images/9997/vm-9997-cloudinit.qcow2', fmt=qcow2 cluster_size=65536 extended_l2=off preallocation=metadata compression_type=zlib size=4194304 lazy_refcounts=off refcount_bits=16
scsi1: successfully created disk 'nfs_datastore7:9997/vm-9997-cloudinit.qcow2,media=cdrom'
update VM 9997: -ide2 local:iso/ubuntu-26.04.1-live-server-amd64.iso,media=cdrom
update VM 9997: -boot order=ide2;scsi0
generating cloud-init ISO
qm clone 9997 6003 \
--name test-9997-clone \
--storage nfs_datastore7 \
--full
qm start 6003
disk size: 840 KiB
disk size: 840 KiB
creating a clone of VM 9997 with ID 6003
create full clone of drive efidisk0 (nfs_datastore7:9997/vm-9997-disk-0.qcow2)
Formatting '/mnt/pve/nfs_datastore7/images/6003/vm-6003-disk-0.qcow2', fmt=qcow2 cluster_size=65536 extended_l2=off preallocation=metadata compression_type=zlib size=540672 lazy_refcounts=off refcount_bits=16
allocated target volume 'nfs_datastore7:6003/vm-6003-disk-0.qcow2'
create full clone of drive scsi0 (nfs_datastore7:9997/vm-9997-disk-1.qcow2)
Formatting '/mnt/pve/nfs_datastore7/images/6003/vm-6003-disk-1.qcow2', fmt=qcow2 cluster_size=65536 extended_l2=off preallocation=metadata compression_type=zlib size=42949672960 lazy_refcounts=off refcount_bits=16
allocated target volume 'nfs_datastore7:6003/vm-6003-disk-1.qcow2'
transferred 0.0 B of 40.0 GiB (0.00%)
transferred 409.6 MiB of 40.0 GiB (1.00%)
transferred 823.3 MiB of 40.0 GiB (2.01%)
transferred 1.2 GiB of 40.0 GiB (3.01%)
transferred 1.6 GiB of 40.0 GiB (4.01%)
transferred 2.0 GiB of 40.0 GiB (5.01%)
transferred 2.4 GiB of 40.0 GiB (6.01%)
transferred 2.8 GiB of 40.0 GiB (7.02%)
transferred 3.2 GiB of 40.0 GiB (8.02%)
transferred 3.6 GiB of 40.0 GiB (9.02%)
transferred 4.0 GiB of 40.0 GiB (10.03%)
transferred 4.4 GiB of 40.0 GiB (11.03%)
transferred 4.8 GiB of 40.0 GiB (12.03%)
transferred 5.2 GiB of 40.0 GiB (13.04%)
transferred 5.6 GiB of 40.0 GiB (14.04%)
transferred 6.0 GiB of 40.0 GiB (15.04%)
transferred 6.4 GiB of 40.0 GiB (16.05%)
transferred 6.8 GiB of 40.0 GiB (17.05%)
transferred 7.2 GiB of 40.0 GiB (18.06%)
transferred 7.6 GiB of 40.0 GiB (19.06%)
transferred 8.0 GiB of 40.0 GiB (20.06%)
transferred 8.4 GiB of 40.0 GiB (21.07%)
transferred 8.8 GiB of 40.0 GiB (22.07%)
transferred 9.2 GiB of 40.0 GiB (23.07%)
transferred 9.6 GiB of 40.0 GiB (24.08%)
transferred 10.0 GiB of 40.0 GiB (25.08%)
transferred 10.4 GiB of 40.0 GiB (26.09%)
transferred 10.8 GiB of 40.0 GiB (27.09%)
transferred 11.2 GiB of 40.0 GiB (28.09%)
transferred 11.6 GiB of 40.0 GiB (29.09%)
transferred 12.0 GiB of 40.0 GiB (30.10%)
transferred 12.4 GiB of 40.0 GiB (31.10%)
transferred 12.8 GiB of 40.0 GiB (32.11%)
transferred 13.2 GiB of 40.0 GiB (33.11%)
transferred 13.6 GiB of 40.0 GiB (34.11%)
transferred 14.0 GiB of 40.0 GiB (35.11%)
transferred 14.4 GiB of 40.0 GiB (36.12%)
transferred 14.8 GiB of 40.0 GiB (37.12%)
transferred 15.3 GiB of 40.0 GiB (38.13%)
transferred 15.7 GiB of 40.0 GiB (39.13%)
transferred 16.1 GiB of 40.0 GiB (40.13%)
transferred 16.5 GiB of 40.0 GiB (41.14%)
transferred 16.9 GiB of 40.0 GiB (42.14%)
transferred 17.3 GiB of 40.0 GiB (43.15%)
transferred 17.7 GiB of 40.0 GiB (44.15%)
transferred 18.1 GiB of 40.0 GiB (45.15%)
transferred 18.5 GiB of 40.0 GiB (46.16%)
transferred 18.9 GiB of 40.0 GiB (47.16%)
transferred 19.3 GiB of 40.0 GiB (48.16%)
transferred 19.7 GiB of 40.0 GiB (49.16%)
transferred 20.1 GiB of 40.0 GiB (50.17%)
transferred 20.5 GiB of 40.0 GiB (51.17%)
transferred 20.9 GiB of 40.0 GiB (52.18%)
transferred 21.3 GiB of 40.0 GiB (53.18%)
transferred 21.7 GiB of 40.0 GiB (54.18%)
transferred 22.1 GiB of 40.0 GiB (55.19%)
transferred 22.5 GiB of 40.0 GiB (56.19%)
transferred 22.9 GiB of 40.0 GiB (57.20%)
transferred 23.3 GiB of 40.0 GiB (58.20%)
transferred 23.7 GiB of 40.0 GiB (59.21%)
transferred 24.1 GiB of 40.0 GiB (60.21%)
transferred 24.5 GiB of 40.0 GiB (61.21%)
transferred 24.9 GiB of 40.0 GiB (62.22%)
transferred 25.3 GiB of 40.0 GiB (63.22%)
transferred 25.7 GiB of 40.0 GiB (64.23%)
transferred 26.1 GiB of 40.0 GiB (65.23%)
transferred 26.5 GiB of 40.0 GiB (66.24%)
transferred 26.9 GiB of 40.0 GiB (67.24%)
transferred 27.3 GiB of 40.0 GiB (68.25%)
transferred 27.7 GiB of 40.0 GiB (69.25%)
transferred 28.1 GiB of 40.0 GiB (70.26%)
transferred 28.5 GiB of 40.0 GiB (71.26%)
transferred 28.9 GiB of 40.0 GiB (72.26%)
transferred 29.3 GiB of 40.0 GiB (73.27%)
transferred 29.7 GiB of 40.0 GiB (74.27%)
transferred 30.1 GiB of 40.0 GiB (75.28%)
transferred 30.5 GiB of 40.0 GiB (76.28%)
transferred 30.9 GiB of 40.0 GiB (77.29%)
transferred 31.3 GiB of 40.0 GiB (78.29%)
transferred 31.7 GiB of 40.0 GiB (79.30%)
transferred 32.1 GiB of 40.0 GiB (80.30%)
transferred 32.5 GiB of 40.0 GiB (81.31%)
transferred 32.9 GiB of 40.0 GiB (82.31%)
transferred 33.3 GiB of 40.0 GiB (83.31%)
transferred 33.7 GiB of 40.0 GiB (84.32%)
transferred 34.1 GiB of 40.0 GiB (85.32%)
transferred 34.5 GiB of 40.0 GiB (86.33%)
transferred 34.9 GiB of 40.0 GiB (87.33%)
transferred 35.3 GiB of 40.0 GiB (88.34%)
transferred 35.7 GiB of 40.0 GiB (89.34%)
transferred 36.1 GiB of 40.0 GiB (90.35%)
transferred 36.5 GiB of 40.0 GiB (91.35%)
transferred 36.9 GiB of 40.0 GiB (92.36%)
transferred 37.3 GiB of 40.0 GiB (93.36%)
transferred 37.7 GiB of 40.0 GiB (94.36%)
transferred 38.1 GiB of 40.0 GiB (95.37%)
transferred 38.5 GiB of 40.0 GiB (96.37%)
transferred 39.0 GiB of 40.0 GiB (97.38%)
transferred 39.4 GiB of 40.0 GiB (98.38%)
transferred 39.8 GiB of 40.0 GiB (99.39%)
transferred 40.0 GiB of 40.0 GiB (100.00%)
transferred 40.0 GiB of 40.0 GiB (100.00%)
create full clone of drive scsi1 (nfs_datastore7:9997/vm-9997-cloudinit.qcow2)
Formatting '/mnt/pve/nfs_datastore7/images/6003/vm-6003-cloudinit.qcow2', fmt=qcow2 cluster_size=65536 extended_l2=off preallocation=metadata compression_type=zlib size=4194304 lazy_refcounts=off refcount_bits=16
allocated target volume 'nfs_datastore7:6003/vm-6003-cloudinit.qcow2'
generating cloud-init ISO
CLONE WORKS!
Create another VM on Dell PowerStore
qm create 9998 \
--name test-powerstore-ubuntu26 \
--memory 4096 \
--cores 2 \
--cpu x86-64-v4 \
--bios ovmf \
--machine q35 \
--ostype l26 \
--scsihw virtio-scsi-pci \
--scsi0 nfs_powerstore2:40,format=qcow2 \
--efidisk0 nfs_powerstore2:1,format=qcow2,efitype=4m,pre-enrolled-keys=1 \
--scsi1 nfs_powerstore2:cloudinit \
--net0 virtio,bridge=vmbr2975 \
--agent enabled=1 \
--vga std
qm set 9998 --ide2 local:iso/ubuntu-26.04.1-live-server-amd64.iso,media=cdrom
qm set 9998 --boot "order=ide2;scsi0"
qm start 9998
Formatting '/mnt/pve/nfs_powerstore2/images/9998/vm-9998-disk-0.qcow2', fmt=qcow2 cluster_size=65536 extended_l2=off preallocation=metadata compression_type=zlib size=540672 lazy_refcounts=off refcount_bits=16
transferred 0.0 B of 528.0 KiB (0.00%)
transferred 528.0 KiB of 528.0 KiB (100.00%)
transferred 528.0 KiB of 528.0 KiB (100.00%)
INFO: reading raw edk2 varstore from /usr/share/pve-edk2-firmware//OVMF_VARS_4M.ms.fd
INFO: var store range: 0x64 -> 0x40000
efidisk0: successfully created disk 'nfs_powerstore2:9998/vm-9998-disk-0.qcow2,efitype=4m,ms-cert=2023k,pre-enrolled-keys=1,size=528K'
Formatting '/mnt/pve/nfs_powerstore2/images/9998/vm-9998-disk-1.qcow2', fmt=qcow2 cluster_size=65536 extended_l2=off preallocation=metadata compression_type=zlib size=42949672960 lazy_refcounts=off refcount_bits=16
scsi0: successfully created disk 'nfs_powerstore2:9998/vm-9998-disk-1.qcow2,size=40G'
Formatting '/mnt/pve/nfs_powerstore2/images/9998/vm-9998-cloudinit.qcow2', fmt=qcow2 cluster_size=65536 extended_l2=off preallocation=metadata compression_type=zlib size=4194304 lazy_refcounts=off refcount_bits=16
scsi1: successfully created disk 'nfs_powerstore2:9998/vm-9998-cloudinit.qcow2,media=cdrom'
update VM 9998: -ide2 local:iso/ubuntu-26.04.1-live-server-amd64.iso,media=cdrom
update VM 9998: -boot order=ide2;scsi0
generating cloud-init ISO
qm clone 9998 6004 \
--name test-9998-clone \
--storage nfs_powerstore2 \
--full
qm start 6004
VM 9998 not running
creating a clone of VM 9998 with ID 6004
create full clone of drive efidisk0 (nfs_powerstore2:9998/vm-9998-disk-0.qcow2)
Formatting '/mnt/pve/nfs_powerstore2/images/6004/vm-6004-disk-0.qcow2', fmt=qcow2 cluster_size=65536 extended_l2=off preallocation=metadata compression_type=zlib size=540672 lazy_refcounts=off refcount_bits=16
allocated target volume 'nfs_powerstore2:6004/vm-6004-disk-0.qcow2'
create full clone of drive scsi0 (nfs_powerstore2:9998/vm-9998-disk-1.qcow2)
Formatting '/mnt/pve/nfs_powerstore2/images/6004/vm-6004-disk-1.qcow2', fmt=qcow2 cluster_size=65536 extended_l2=off preallocation=metadata compression_type=zlib size=42949672960 lazy_refcounts=off refcount_bits=16
allocated target volume 'nfs_powerstore2:6004/vm-6004-disk-1.qcow2'
transferred 0.0 B of 40.0 GiB (0.00%)
transferred 40.0 GiB of 40.0 GiB (100.00%)
transferred 40.0 GiB of 40.0 GiB (100.00%)
create full clone of drive scsi1 (nfs_powerstore2:9998/vm-9998-cloudinit.qcow2)
Formatting '/mnt/pve/nfs_powerstore2/images/6004/vm-6004-cloudinit.qcow2', fmt=qcow2 cluster_size=65536 extended_l2=off preallocation=metadata compression_type=zlib size=4194304 lazy_refcounts=off refcount_bits=16
allocated target volume 'nfs_powerstore2:6004/vm-6004-cloudinit.qcow2'
generating cloud-init ISO
Something is very odd, as this is instant!
qemu-img info /mnt/pve/nfs_powerstore2/images/6004/vm-6004-disk-1.qcow2 | grep "disk size"
disk size: 7.68 MiB
disk size: 7.68 MiB
CLONE IS BROKEN!
Just trying another Dell Powerstore datastore.