CSvec has the right idea.

Additional steps, required in my situation:

- Despite running " echo "::1 localhost.localdom localhost" >> /etc/hosts" before stage 2, I got the same error.

- After 2 tries, I figured out, the the begging of stage 2 was actually erasing the edits in /etc/hosts

Solution:

- Wait until stage 2 is at 2%, and then add " echo "::1 localhost.localdom localhost" >> /etc/hosts". You may want to be logged in via SSH in order to be ready.

Option B:

- Set the DNS to the VC itself. This can be updated later.

Good luck.