Public bug reported:

Reproducing:
Create fat32 bootable pendrive having the below  grub entry

boot.cfg
menuentry "Run ubuntu-15.10-desktop-amd64 " {
 loopback loop /ubuntu-15.10-desktop-amd64.iso
 linux (loop)/casper/vmlinuz.efi boot=casper 
iso-scan/filename=/ubuntu-15.10-desktop-amd64.iso persistent show-cow --
 initrd (loop)/casper/initrd.lz
}

iso file is an unmodified unutu iso.

After boot into desktop, running
# echo TEST > /etc/test-file
# casper-snapshot  
# cp /mnt/casper-snapshot/casper-sn.cpio.gz /media/ubuntu/<PENDRIVE_NAME>
# shutdown -r now

Boot again the same way into desktop.
# ls -l /etc/test-file
ls: cannot access /etc/test-file: No such file or directory


Hint:
#cat /upper/etc/test-file
TEST

** Affects: casper (Ubuntu)
     Importance: Undecided
         Status: New

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https://bugs.launchpad.net/bugs/1520575

Title:
  casper-sn persistence fails in 14.04.3, 15.10

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