hello, i have similar problem... when i run "pkg image-update" in the end i see 
error message, could not create image...
while i try to solve this, i discovered that "beadm create osolname" give me 
same output:

Unable to create osloname.
Mount busy.

can you tell me what exactly should i do? what should i mount/umount?

p.s. i have some "legacy" datasets, which belongs to non-global zones

[snv_109, tried to upgrade to snv_110]
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