I have more evidence that the issue is indeed the same.

The original bug was fixed by making casper depend on finalrd, see the
explanatory casper 1.420 d/changelog entry reported in comment 33.
However it appears that the fix is racey: sometimes finalrd is not
triggered in time at shutdown/reboot, and the system gets stuck with the
errors that pivoting to /run/initramfs would prevent.

I verified this by jumping in a shell during a subiquity install and
running

# systemctl stop finalrd

and logging out. After doing this the reboot doesn't fail anymore. (Note
that finalrd.service has

ExecStart=/bin/true
ExecStop=/usr/bin/finalrd

so it actually does its /run/initramfs overlay mount at *stop* (= at
shutdown), and not at start.) Apparently this doesn't happen early or
fast enough to save the day when rebooting the live session.

I guess we need to enforce some ordering in the shutdown targets
execution.

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https://bugs.launchpad.net/bugs/1840122

Title:
  System fails to reboot from live session or ubiquity-dm -
  squashfs_read_data failed to read block

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