PiShrink
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FeatureRequest: Working with overlay file system enabled
For production creating, Overlay File System is a good way to protect sd card. But it seems that when the function is created, pishrink is not working well. Maybe the problem is about resizing a readonly file system?
For me, it's stuck in a boot loop
i would recommend that you just create the image from your sd card before enabling this option. at least until custom first boot scripting is available.