This is a tracking bug for Change: Reduce installation media size by eliminating the intermediate EXT4 filesystem in the SquashFS
For more details, see: https://fedoraproject.org/wiki/Changes/OptimizeSquashFSOnDVDByRemovingEXT4FilesystemImageLayer
Change the process of building installation images such that the Squash filesystem image, which is present on netinstall and DVD ISO images, doesn't contain the EXT4 filesystem image. As a result of implementation of this change, files will be stored directly in SquashFS.
I created a new pull request in Pagure:
Mohan Boddu merged the request. The change will be included into the next Fedora RawHide nightly compose.