This bug was fixed in the package casper - 1.426

---------------
casper (1.426) eoan; urgency=medium

  * Just like in Disco, overlayfs squashfs is tripped up with an empty
    file, this time it's machine-id. Maybe we should finally dig into
    what's wrong in the kernel/systemd when trying to edit overlayfs
    multi-lowerdir squashfs readonly files. LP: #1848190

 -- Dimitri John Ledkov <[email protected]>  Tue, 15 Oct 2019 15:08:34
+0100

** Changed in: casper (Ubuntu Eoan)
       Status: Fix Committed => Fix Released

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https://bugs.launchpad.net/bugs/1848190

Title:
  amd64 preseeded install fails: Input/output error: '/etc/machine-id'

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