https://bugs.freebsd.org/bugzilla/show_bug.cgi?id=265196

--- Comment #15 from Larry Rosenman <l...@freebsd.org> ---
that lead me to the issue 
the ISO path is NOT a full path from /zroot/vm-bhyve/.iso/talos-amd64.iso
instead I had to use ../.iso/talos-amd64.iso

now trying to debug the install :)

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