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I've had the same issue, but did some steps to get it to work.

  1. Create an image from your distribution (Ubuntu, CentOS, etc.)
  2. Create an instance
  3. Wait for error message
  4. Look into "Volumes"
  5. If the copy process isn't complete wait for it.
  6. Delete the previous instance but not the volume.
  7. Click on the volume and create an instance from it.
  8. Now your instance schould be up and running.