It has been reported by Neal Gompa (ngompa13@gmail.com)
My only issue with it is that using unsquashfs to install
live environments causes the environment to freeze, which is not
great. This doesn't affect Anaconda, but it does affect Calamares
(which Fedora itself does not use).
Unsquashfs uses getrlimit() (equivalent to Bash ulimit -n) to get the maximum number of files that can be opened. It may be the case that opening that many files causes read operations to be throttled, causing the system to hang. Obviously a solution here is to set the maximum number of files to a smaller value before calling Unsquashfs. But Unsquashfs could probably open less files automatically without affecting performance.
This issue needs to be reproduced and investigated.