25.04.1 can't find out how to set VM disk from encrypted dataset

I use TrueNAS-SCALE-22.02.4 in production, which has tons of bugs, but I made it work to how I need it years ago. Since then I’m periodically trying out newer version of TrueNAS and somehow it keeps getting worse. Today, I installed the new 25.04.1 on a non-prod device to test it out. I immediately noticed they replaced Virtual Machines with Instances and made the UI worse again. But now that I’m trying to navigate around it, I noticed I have to set a pool for it to even begin to work. Pool-level dataset is worthless, because it doesn’t offer any security. All it can do is pool-level encryption, with the encryption key on that same machine. I am being forced by the UI to use non-encrypted storage for the ISO images, and then additionally forced to use non-encrypted storage for the zvols used as drives.

Let me re-iterate: There was perfectly working, fully functioning VM featureset. They then replaced the tech for VNC and implemented something totally broken that never worked, and now they also removed ability to run VM’s from encrypted datasets.

Is there like discussions that happen somewhere so I can observe how this catastrophic decision making is done? Who wants this??? How did this happen?

The need to use an external VNC client did annoy me a bit, but I almost never need to look at the display so it wasn’t a show stopper (but I know that’s just my use case). Apparently a lot of people had issues with the old SPICE implementation and were happy to see it removed funny enough.

As for the virtualization change in general, it is still KVM under the hood, but just through Incus. It definitely is not fully finished, though they note this since the feature is marked as Experimental. It’s recommended to use 24.10.xx (Electric Eel) still if you’re heavily dependent on VMs until the Incus implementation is complete.

This was the epic for the feature in general. Not sure where they’re tracking the continual improvements now, but it’s likely another Jira issue; though sometimes they’re private.

Yeah, the SPICE fiasco is what I’ve been referring to. Thanks. Your post has been informative, and unfortunate.