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9 changes: 5 additions & 4 deletions dstack-util/src/system_setup.rs
Original file line number Diff line number Diff line change
Expand Up @@ -1053,11 +1053,12 @@ impl<'a> Stage0<'a> {
}
};

// For encrypted ZFS, need both LUKS header AND zpool to exist
let initialized = if opts.storage_encrypted && opts.storage_fs == FsType::Zfs {
has_luks && has_fs
// For encrypted filesystems, we can only detect the filesystem after LUKS is opened
// So we rely on LUKS header presence as the indicator for both ext4 and ZFS
let initialized = if opts.storage_encrypted {
has_luks
} else {
has_luks || has_fs
has_fs
};

if !initialized {
Expand Down