I am speculating this is a VM firmware issue. I ran the test on a Noble
host system and was unable to recreate the issue. I then used the OVMF
firmware from the latest version in Plucky and was able to recreate the
failure on first boot behavior.

For reference:
- Working install: ovmf 2024.02-2ubuntu0.1
- Failing install: ovmf 2025.02-3ubuntu1

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https://bugs.launchpad.net/bugs/2104316

Title:
  25.04 beta TPMFDE: first boot failure

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