Installing/Mounting Virtual Machine to non-root drive

[StackGoblin]

I have a setup where the root drive is btrfs and the volume isn't big enough to have extra space for the standard 64G disk size specified in the compose.yaml file. I suspect that this is part of the reason that installing the vm fails for me. Can someone please explain to me how I can configure the settings so that the data volume is created on a different partition and whether it would be a good idea to have a volume formatted with ntfs for winapps to use.

OS: EndeavorOS
WM: Hyprland(wayland)

[StackGoblin]

For context this is the error screen I get trying to install the vm with the default settings