Unable to clone VM template after updating disk image

I am trying to automate up to date cloud images for Ubuntu and Debian VM templates.

Once a template has been cloned using linked clones, it is not possible to delete the template, so I just change the disk to be used in new clones, while the existing clones can still link to previous disk image.

I can create a template ok, and I can create linked clone ok.
When I later update the cloud image, and change the disk used in the template to the new cloud image, I can no longer clone the...

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