We need to do it in a different order.

live-build/auto/build

@@ -56,12 +56,13 @@ if [ "${IMAGEFORMAT:-}" = "ubuntu-image" ]; then
 		#  we should be supporting more than one for models that
 		#  define those.
 		mv output/*.img "$PREFIX".img
-		xz -0 -T4 "$PREFIX".img
-		mv output/seed.manifest "$PREFIX".manifest
-		# For appliance images we also need to generate qcow2 images
+		# For appliance images we also need to generate qcow2 images.
 		case "${SUBARCH:-}" in appliance-*)
 			convert_to_qcow2 "$PREFIX".img "$PREFIX".qcow2 ;;
 		esac
+		# Now regular, compressed images.
+		xz -0 -T4 "$PREFIX".img
+		mv output/seed.manifest "$PREFIX".manifest
 	else
 		# First we need to build the gadget tree
 		make -C "config/$PREFIX-gadget" ARCH=$ARCH SERIES=$SUITE