diff --git a/layers/meta-belden-coreos-bsp/conf/machine/include/coreos-generic-machine/vm.inc b/layers/meta-belden-coreos-bsp/conf/machine/include/coreos-generic-machine/vm.inc
index 2ca2558..2d88773 100644
--- a/layers/meta-belden-coreos-bsp/conf/machine/include/coreos-generic-machine/vm.inc
+++ b/layers/meta-belden-coreos-bsp/conf/machine/include/coreos-generic-machine/vm.inc
@@ -11,7 +11,7 @@ PREFERRED_PROVIDER_virtual/kernel ?= "linux-yocto"
 
 MACHINE_EXTRA_RRECOMMENDS += "kernel-modules linux-firmware"
 
-IMAGE_FSTYPES += "ext4 wic wic.bmap wic.vmdk"
+IMAGE_FSTYPES += "ext4 wic wic.xz wic.bmap wic.vmdk"
 
 WKS_FILE ?= "generic-uefi.wks.in"
 do_image_wic[depends] += "gptfdisk-native:do_populate_sysroot"