I used virtualbox to confirm the following

1) installer formats the disk = permissions are set correctly

2) install to an existing disk = it does not change the permissions for
that disk.

okay, so I guess it's not really a bug...  but it is not the behavior
that I would expect when doing an INSTALL

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https://bugs.launchpad.net/bugs/1290393

Title:
  WARN: / is world writable!

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