diff --git a/live-build/ubuntu-server/hooks/032-installer-squashfs.binary b/live-build/ubuntu-server/hooks/032-installer-squashfs.binary
index 8dfd54b8..216f1922 100755
--- a/live-build/ubuntu-server/hooks/032-installer-squashfs.binary
+++ b/live-build/ubuntu-server/hooks/032-installer-squashfs.binary
@@ -24,7 +24,7 @@ fi
 . config/functions
 
 SQUASH_ROOT=binary/boot/squashfs.dir
-OVERLAY_ROOT=binary/boot/overlay.dir
+OVERLAY_ROOT=binary/overlay
 
 mkdir -p "$OVERLAY_ROOT"
 
diff --git a/live-build/ubuntu-server/includes.binary/boot/overlay.dir/etc/netplan/00-installer-config.yaml b/live-build/ubuntu-server/includes.binary/overlay/etc/netplan/00-installer-config.yaml
similarity index 100%
rename from live-build/ubuntu-server/includes.binary/boot/overlay.dir/etc/netplan/00-installer-config.yaml
rename to live-build/ubuntu-server/includes.binary/overlay/etc/netplan/00-installer-config.yaml
diff --git a/live-build/ubuntu-server/includes.binary/boot/overlay.dir/lib/systemd/system/getty@.service.d/autologin.conf b/live-build/ubuntu-server/includes.binary/overlay/lib/systemd/system/getty@.service.d/autologin.conf
similarity index 100%
rename from live-build/ubuntu-server/includes.binary/boot/overlay.dir/lib/systemd/system/getty@.service.d/autologin.conf
rename to live-build/ubuntu-server/includes.binary/overlay/lib/systemd/system/getty@.service.d/autologin.conf
diff --git a/live-build/ubuntu-server/includes.binary/boot/overlay.dir/lib/systemd/system/multi-user.target.wants/subiquity.service b/live-build/ubuntu-server/includes.binary/overlay/lib/systemd/system/multi-user.target.wants/subiquity.service
similarity index 100%
rename from live-build/ubuntu-server/includes.binary/boot/overlay.dir/lib/systemd/system/multi-user.target.wants/subiquity.service
rename to live-build/ubuntu-server/includes.binary/overlay/lib/systemd/system/multi-user.target.wants/subiquity.service
diff --git a/live-build/ubuntu-server/includes.binary/boot/overlay.dir/lib/systemd/system/subiquity-debug@.service b/live-build/ubuntu-server/includes.binary/overlay/lib/systemd/system/subiquity-debug@.service
similarity index 100%
rename from live-build/ubuntu-server/includes.binary/boot/overlay.dir/lib/systemd/system/subiquity-debug@.service
rename to live-build/ubuntu-server/includes.binary/overlay/lib/systemd/system/subiquity-debug@.service
diff --git a/live-build/ubuntu-server/includes.binary/boot/overlay.dir/lib/systemd/system/subiquity.service b/live-build/ubuntu-server/includes.binary/overlay/lib/systemd/system/subiquity.service
similarity index 100%
rename from live-build/ubuntu-server/includes.binary/boot/overlay.dir/lib/systemd/system/subiquity.service
rename to live-build/ubuntu-server/includes.binary/overlay/lib/systemd/system/subiquity.service