I rebooted to the image again and chose to repair the installation and
it completed successfully this time as well.

So it fails at the end of the first install attempt and then succeeds
when repairing the initial installation.

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https://bugs.launchpad.net/bugs/1070040

Title:
  12.10 Install crashed on Virtual Box - plugininstall.py: OSError:
  [Errno 12] Cannot allocate memory

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