anaconda-iso cannot be updated via `bootc switch` due to missing /boot/loader with transient / & /etc configured.

[bdegeeter]

Creating an image with transient / and /etc results in an anaconda-iso that has no /boot/loader. Trying to update the OS via bootc switch fails due to the missing /boot/loader.

FROM quay.io/centos-bootc/centos-bootc:stream9

# Transient /etc/ wipes out /etc/fstab from bootc-image-builder iso kickstart
RUN echo -e '[etc]\ntransient=true\n[root]\ntransient=true' >> /usr/lib/ostree/prepare-root.conf && \
    set -x; kver=$(cd /usr/lib/modules && echo *); dracut --kver $kver --show-modules -f /usr/lib/modules/$kver/initramfs.img

BIB config:

	$(PODMAN_CMD) run --rm \
		--name $(IMAGE_NAME)-bootc-image-builder \
		--tty \
		--privileged \
		--security-opt label=type:unconfined_t \
		-v $(PWD):/workspace \
		-v $(PWD)/output:/output \
		-v /var/lib/containers/storage:/var/lib/containers/storage \
		-v $(PWD)/config.json:/config.json:ro \
		--label bootc.image.builder=true \
		quay.io/centos-bootc/bootc-image-builder:latest \
		localhost/$(IMAGE_NAME):$(IMAGE_TAG) \
		--output /output/ \
		--verbose \
		--type anaconda-iso \
		--use-librepo=True 

config.json

{
  "customizations": {
    "user": [
      {
        "name": "testuser",
        "password": "Passw0rd",
        "groups": ["wheel"]
      }
    ],
    "kernel": {
      "append": "audit=0 quiet systemd.show_status=yes"
    }
  }
}

Is this expected from the anaconda-iso build?