What I found in syslog (of the installing system) is:

2026-03-15T15:50:19.866636+00:00 ubuntu-server kernel: 
oom-kill:constraint=CONSTRAINT_NONE,nodemask=(null),cpuset=/,mems_allowed=0,global_oom,task_memcg=/system.slice/run-p3370-i3371.service,task=zstd,pid=7715,uid=0
2026-03-15T15:50:19.866636+00:00 ubuntu-server kernel: Out of memory: Killed 
process 7715 (zstd) total-vm:532448kB, anon-rss:154880kB, file-rss:68kB, 
shmem-rss:0kB, UID:0 pgtables:394kB oom_score_adj:0
2026-03-15T15:50:20.028191+00:00 ubuntu-server systemd[1]: 
run-p3370-i3371.service: The kernel OOM killer killed some processes in this 
unit.
2026-03-15T15:50:20.147597+00:00 ubuntu-server systemd[1]: 
run-p3370-i3371.service: Failed with result 'oom-kill'.
2026-03-15T15:50:20.157727+00:00 ubuntu-server systemd[1]: 
run-p3370-i3371.service: Consumed 13.340s CPU time over 18.231s wall clock 
time, 226.8M memory peak.
2026-03-15T15:50:20.621083+00:00 ubuntu-server subiquity_event.1776[1776]:  
executing curtin install curthooks step
2026-03-15T15:50:20.622926+00:00 ubuntu-server subiquity_event.1776[1776]: 
installing system

So looks like standard compression of the initrd now requires more RAM.
My standard KVM test guest has (just) 2GB.
Trying with a bit more (thinking about 4GB) ...

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https://bugs.launchpad.net/bugs/2143803

Title:
  Installation of resolute KVM guest crashed

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