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zululog.txt has the smoking gun:

[996859ms] WARNING: Host used command 0x1A which is affected by drive geometry. Current settings are 63 sectors x 255 heads = 16065 but image size of 2097152 sectors is not divisible. This can cause error messages in diagnostics tools.

i think the solution here is to resize the disk image file so it is divisible by 63*255*512.