[Bug] Codespace fails creation. Starts in recovery mode.

[housten]

Summary

The codespace fails to create and starts in recovery mode.

How to reproduce

1. Use the template mechanism to create your own copy of the repo
2. Ensure you are signed in to github for the new repo.
3. Click on codespace | create codespace
4. See error

Additional context

The creation log contains this:
first sign of a problem
2026-03-02 12:28:12.429Z: #12 3.011 E: Failed to fetch https://packages.microsoft.com/repos/azure-cli/dists/noble/InRelease 403 Forbidden [IP: 13.107.213.67 443]
12 3.011 E: The repository 'https://packages.microsoft.com/repos/azure-cli noble InRelease' is not signed.

ERROR entry
2026-03-02 12:29:34.057Z: 13 10.13 W: GPG error: https://packages.microsoft.com/repos/microsoft-ubuntu-noble-prod noble InRelease: The following signatures couldn't be verified because the public key is not available: NO_PUBKEY EB3E94ADBE1229CF
13 10.13 E: The repository 'https://packages.microsoft.com/repos/microsoft-ubuntu-noble-prod noble InRelease' is not signed.
13 10.13 ERROR: Feature "Docker (Docker-in-Docker)" (ghcr.io/devcontainers/features/docker-in-docker) failed to install! Look at the documentation at ********/devcontainers/features/tree/main/src/docker-in-docker for help troubleshooting this error.
13 ERROR: process "/bin/sh -c cp -ar /tmp/build-features-src/docker-in-docker_1 /tmp/dev-container-features && chmod -R 0755 /tmp/dev-container-features/docker-in-docker_1 && cd /tmp/dev-container-features/docker-in-docker_1 && chmod +x ./devcontainer-features-install.sh && ./devcontainer-features-install.sh && rm -rf /tmp/dev-container-features/docker-in-docker_1" did not complete successfully: exit code: 100

[FidelusAleksander]

@housten Thanks for reporting! This should be fixed now

Please let us know if there are any further issues