I noticed that the system VM template is stored in S3 as a .bz2. E.g. as a .vhd.bz2 when using a Hyper-V hypervisor.
Naturally, you can't run a bz2. Nor can you make a thin copy of it, say if it's a downloaded as a TEMPLATE to a primary storage pool. Should it be uncompressed before it goes into S3, when it is copied from S3 to primary storage, or when a volume is created from the TEMPLATE?