diff --git a/.github/actions/download-rootfs/action.yaml b/.github/actions/download-rootfs/action.yaml
index d6ed8125a..7cd5d69bd 100644
--- a/.github/actions/download-rootfs/action.yaml
+++ b/.github/actions/download-rootfs/action.yaml
@@ -1,5 +1,5 @@
 name: Download Ubuntu WSL Rootfs
-description: Download the latest Rootfs for a particular release of Ubuntu WSL 
+description: Download the latest Rootfs for a particular release of Ubuntu WSL
 
 inputs:
   distros:
@@ -93,6 +93,8 @@ runs:
 
           $file = ".\${name}.tar.gz"
 
+          Write-Output "Saving $($url[0..19] -join '')***$($url[-19..-1] -join '') to $file"
+
           & ${{ github.action_path }}\download-rootfs.ps1 -Path "${file}" -URL "$url"
           if ( ! $? ) {
             $allSuccess = $false
diff --git a/DistroLauncher/Ubuntu/InitTasks.cpp b/DistroLauncher/Ubuntu/InitTasks.cpp
index a28296e5b..05c96905c 100644
--- a/DistroLauncher/Ubuntu/InitTasks.cpp
+++ b/DistroLauncher/Ubuntu/InitTasks.cpp
@@ -35,9 +35,14 @@ bool CheckInitTasks(WslApiLoader& api, bool checkDefaultUser) {
 
 namespace {
 void waitForInitTasks(WslApiLoader& api) {
+  // Wait for cloud-init to finish if systemd and its service is enabled.
+  static constexpr wchar_t script[] = LR"(
+if status=$(LANG=C systemctl is-system-running 2>/dev/null) || [ "${status}" != "offline" ] && systemctl is-enabled --quiet cloud-init.service 2>/dev/null; then
+  cloud-init status --wait > /dev/null 2>&1 || true
+fi
+)";
   DWORD exitCode = -1;
-  // Try running cloud-init unconditionally, but avoid printing to console.
-  auto hr = api.WslLaunchInteractive(L"cloud-init status --wait >/dev/null 2>&1", FALSE, &exitCode);
+  auto hr = api.WslLaunchInteractive(script, FALSE, &exitCode);
   if (FAILED(hr)) {
     Helpers::PrintErrorMessage(hr);
     return;
diff --git a/e2e/launchertester/basic_setup_test.go b/e2e/launchertester/basic_setup_test.go
index 61188d6e5..70a2527ba 100644
--- a/e2e/launchertester/basic_setup_test.go
+++ b/e2e/launchertester/basic_setup_test.go
@@ -5,6 +5,7 @@ import (
 	"context"
 	"fmt"
 	"os"
+	"os/exec"
 	"path/filepath"
 	"strconv"
 	"strings"
@@ -45,6 +46,7 @@ func TestSetupWithCloudInit(t *testing.T) {
 	testCases := map[string]struct {
 		install_root     bool
 		withRegistryUser string
+		withWSL1         bool
 		wantUser         string
 		wantFile         string
 	}{
@@ -56,6 +58,7 @@ func TestSetupWithCloudInit(t *testing.T) {
 		"With only remote users":  {wantUser: "testmail"},
 		"With broken passwd file": {wantUser: "testmail"},
 		"Without checking user":   {install_root: true, wantUser: "root", wantFile: "/home/testuser/with_default_user.done"},
+		"Do not block on WSL1":    {install_root: true, wantUser: "root"},
 	}
 
 	home, err := os.UserHomeDir()
@@ -77,6 +80,13 @@ func TestSetupWithCloudInit(t *testing.T) {
 
 	for name, tc := range testCases {
 		t.Run(name, func(t *testing.T) {
+			if tc.withWSL1 {
+				require.NoError(t, exec.Command("wsl.exe", "--set-default-version", "1").Run(), "Setup: Cannot set WSL1 as default version")
+				t.Cleanup(func() {
+					t.Log("Cleaning up: Setting WSL2 back as default version")
+					require.NoError(t, exec.Command("wsl.exe", "--set-default-version", "2").Run(), "Setup: Cannot set WSL2 back as default version")
+				})
+			}
 			wslSetup(t)
 
 			ctx, cancel := context.WithTimeout(context.Background(), 10*time.Minute)
diff --git a/e2e/launchertester/testdata/TestSetupWithCloudInit/do_not_block_on_wsl1 b/e2e/launchertester/testdata/TestSetupWithCloudInit/do_not_block_on_wsl1
new file mode 100644
index 000000000..fff822865
--- /dev/null
+++ b/e2e/launchertester/testdata/TestSetupWithCloudInit/do_not_block_on_wsl1
@@ -0,0 +1,20 @@
+#cloud-config
+users:
+  - name: nontestuser
+    groups: sudo
+    shell: /bin/bash
+    sudo: ALL=(ALL) NOPASSWD:ALL
+  - name: testuser
+    groups: sudo
+    shell: /bin/bash
+    sudo: ALL=(ALL) NOPASSWD:ALL
+
+write_files:
+  - path: /etc/wsl.conf
+    append: true
+    content: |
+      [user]
+      default=testuser
+
+runcmd:
+  - touch /home/testuser/with_default_user.done
diff --git a/meta/Ubuntu/generated/DistroLauncher-Appx/Assets/LargeTile.scale-100.png b/meta/Ubuntu/generated/DistroLauncher-Appx/Assets/LargeTile.scale-100.png
index 587a06934..f4f287ac1 100644
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diff --git a/meta/Ubuntu22.04LTS/generated/DistroLauncher-Appx/Assets/StoreLogo.scale-100.png b/meta/Ubuntu22.04LTS/generated/DistroLauncher-Appx/Assets/StoreLogo.scale-100.png
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index a06fd2dc2..c76094f01 100644
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index 6431b3e8e..21688b691 100644
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index d2b75ab4d..27e6b77e2 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/SmallTile.scale-100.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/SmallTile.scale-100.png
index 7e0059b37..7023dacda 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/SmallTile.scale-125.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/SmallTile.scale-125.png
index d17b4d36c..15175a17d 100644
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index b9b3f93f1..39d594933 100644
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index 8d861378a..aaa8fa6b0 100644
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index e16d21083..5f9412fc2 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/SplashScreen.scale-100.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/SplashScreen.scale-100.png
index 7650f09c0..b7e783811 100644
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index c3fce7e29..47e80045d 100644
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index 9ddabe744..d1b7ee2c1 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/SplashScreen.scale-200.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/SplashScreen.scale-200.png
index a19b19949..6a9d542d4 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/SplashScreen.scale-400.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/SplashScreen.scale-400.png
index 421d0926b..04e18a43f 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square150x150Logo.scale-100.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square150x150Logo.scale-100.png
index 9b36c98de..9afc41b84 100644
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index c3117ca47..bf4d5a4b5 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square150x150Logo.scale-150.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square150x150Logo.scale-150.png
index 04082c2ff..3ac2dcffe 100644
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index 4dd28621f..dc8586805 100644
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index 6fd0d989c..2ed0be568 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.altform-unplated_targetsize-16.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.altform-unplated_targetsize-16.png
index 76f31dc17..943d609cb 100644
Binary files a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.altform-unplated_targetsize-16.png and b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.altform-unplated_targetsize-16.png differ
diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.altform-unplated_targetsize-24.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.altform-unplated_targetsize-24.png
index e92fab286..93d9f168f 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.altform-unplated_targetsize-256.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.altform-unplated_targetsize-256.png
index 25a4a6deb..366cb644a 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.altform-unplated_targetsize-32.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.altform-unplated_targetsize-32.png
index 19c118a77..8b4352a70 100644
Binary files a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.altform-unplated_targetsize-32.png and b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.altform-unplated_targetsize-32.png differ
diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.altform-unplated_targetsize-48.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.altform-unplated_targetsize-48.png
index d1cc02bea..41e7ef4dd 100644
Binary files a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.altform-unplated_targetsize-48.png and b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.altform-unplated_targetsize-48.png differ
diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.scale-100.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.scale-100.png
index bcd8b4681..ab35231bf 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.scale-125.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.scale-125.png
index 00c1772c6..1cb78ce4e 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.scale-150.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.scale-150.png
index 2f0a18c63..2a792ddcf 100644
Binary files a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.scale-150.png and b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.scale-150.png differ
diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.scale-200.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.scale-200.png
index ef1a90ef3..9f53e25b8 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.scale-400.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.scale-400.png
index 6637bc697..67cd4c02c 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.targetsize-16.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.targetsize-16.png
index 76f31dc17..943d609cb 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.targetsize-24.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.targetsize-24.png
index e92fab286..93d9f168f 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.targetsize-256.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.targetsize-256.png
index 25a4a6deb..366cb644a 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.targetsize-32.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.targetsize-32.png
index 19c118a77..8b4352a70 100644
Binary files a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.targetsize-32.png and b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.targetsize-32.png differ
diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.targetsize-48.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.targetsize-48.png
index d1cc02bea..41e7ef4dd 100644
Binary files a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.targetsize-48.png and b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Square44x44Logo.targetsize-48.png differ
diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/StoreLogo.scale-100.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/StoreLogo.scale-100.png
index c6f42bbba..0599dc3dc 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/StoreLogo.scale-125.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/StoreLogo.scale-125.png
index 8ab6a47ce..1fe7dcc0d 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/StoreLogo.scale-150.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/StoreLogo.scale-150.png
index 870d0c559..04b97bf8e 100644
Binary files a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/StoreLogo.scale-150.png and b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/StoreLogo.scale-150.png differ
diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/StoreLogo.scale-200.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/StoreLogo.scale-200.png
index 70e8d3aeb..dfad77766 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/StoreLogo.scale-400.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/StoreLogo.scale-400.png
index 676d20bdb..aac2e10d4 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Wide310x150Logo.scale-100.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Wide310x150Logo.scale-100.png
index 74364dc7c..38f746f25 100644
Binary files a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Wide310x150Logo.scale-100.png and b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Wide310x150Logo.scale-100.png differ
diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Wide310x150Logo.scale-125.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Wide310x150Logo.scale-125.png
index 291932720..68eaa1922 100644
Binary files a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Wide310x150Logo.scale-125.png and b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Wide310x150Logo.scale-125.png differ
diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Wide310x150Logo.scale-150.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Wide310x150Logo.scale-150.png
index 64bf00a99..28d2a2c96 100644
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diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Wide310x150Logo.scale-200.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Wide310x150Logo.scale-200.png
index 7650f09c0..b7e783811 100644
Binary files a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Wide310x150Logo.scale-200.png and b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Wide310x150Logo.scale-200.png differ
diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Wide310x150Logo.scale-400.png b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Wide310x150Logo.scale-400.png
index a19b19949..6a9d542d4 100644
Binary files a/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Wide310x150Logo.scale-400.png and b/meta/UbuntuPreview/generated/DistroLauncher-Appx/Assets/Wide310x150Logo.scale-400.png differ
diff --git a/meta/UbuntuPreview/generated/DistroLauncher-Appx/MyDistro.appxmanifest b/meta/UbuntuPreview/generated/DistroLauncher-Appx/MyDistro.appxmanifest
index 9cc93e017..ab0852bc2 100644
--- a/meta/UbuntuPreview/generated/DistroLauncher-Appx/MyDistro.appxmanifest
+++ b/meta/UbuntuPreview/generated/DistroLauncher-Appx/MyDistro.appxmanifest
@@ -1,6 +1,6 @@
 <?xml version="1.0" encoding="utf-8"?>
 <Package xmlns="http://schemas.microsoft.com/appx/manifest/foundation/windows10" xmlns:mp="http://schemas.microsoft.com/appx/2014/phone/manifest" xmlns:uap="http://schemas.microsoft.com/appx/manifest/uap/windows10" xmlns:uap2="http://schemas.microsoft.com/appx/manifest/uap/windows10/2" xmlns:uap3="http://schemas.microsoft.com/appx/manifest/uap/windows10/3" xmlns:desktop="http://schemas.microsoft.com/appx/manifest/desktop/windows10" xmlns:rescap="http://schemas.microsoft.com/appx/manifest/foundation/windows10/restrictedcapabilities" IgnorableNamespaces="uap mp uap2 uap3 rescap desktop">
-  <Identity Name="CanonicalGroupLimited.UbuntuPreview" Version="2410.0.42.0" Publisher="CN=23596F84-C3EA-4CD8-A7DF-550DCE37BCD0" ProcessorArchitecture="x64" />
+  <Identity Name="CanonicalGroupLimited.UbuntuPreview" Version="2504.0.42.0" Publisher="CN=23596F84-C3EA-4CD8-A7DF-550DCE37BCD0" ProcessorArchitecture="x64" />
   <mp:PhoneIdentity PhoneProductId="160867c6-4e75-4e36-85c6-1543de07d5f3" PhonePublisherId="00000000-0000-0000-0000-000000000000" />
   <Properties>
     <DisplayName>Ubuntu (Preview)</DisplayName>
diff --git a/meta/UbuntuPreview/generated/DistroLauncher/images/icon.ico b/meta/UbuntuPreview/generated/DistroLauncher/images/icon.ico
index 17dc5bc33..7f1cf8441 100644
Binary files a/meta/UbuntuPreview/generated/DistroLauncher/images/icon.ico and b/meta/UbuntuPreview/generated/DistroLauncher/images/icon.ico differ
diff --git a/meta/UbuntuPreview/generated/store/en-us/ProductDescription.xml b/meta/UbuntuPreview/generated/store/en-us/ProductDescription.xml
index eb6000176..4c72b4d2b 100644
--- a/meta/UbuntuPreview/generated/store/en-us/ProductDescription.xml
+++ b/meta/UbuntuPreview/generated/store/en-us/ProductDescription.xml
@@ -28,7 +28,7 @@ For more information about Ubuntu WSL and how Canonical supports developers plea
 
 https://ubuntu.com/wsl
 </Description>
-  <ReleaseNotes>http://www.ubuntu.com/getubuntu/releasenotes?os=ubuntu&amp;ver=24.10</ReleaseNotes>
+  <ReleaseNotes>http://www.ubuntu.com/getubuntu/releasenotes?os=ubuntu&amp;ver=25.04</ReleaseNotes>
   <DevStudio>Canonical Ltd. and the OpenSource community</DevStudio>
   <ScreenshotCaptions>
     <!-- Valid length: 200 character limit, up to 9 elements per platform -->