Solution:
Create all the mountpoints in the root-fs when doing a manual install.
e.g:
sudo mkdir -p /target/{proc,sys,dev/pts,var,home,boot,usr/local}
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Reviewing the source it looks to be stalling in
partman/finish.d/apt_clone_save
I added 'set -x' to top of that file in the live system and captured the
following in its syslog. Looks like there's a failure to create the
root-fs directory structure and so there is no mountpoint for the /var/
file-
