[FS#927] SQUASHFS error: xz decompression failed

[LEDE Bugs]

The following task has a new comment added:

FS#927 - SQUASHFS error: xz decompression failed
User who did this - Rob White (bluewavenet)

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@Alexander Couzens
Yes, I can build an image with some test scripts to force the problem.
What hardware do you have available? 
I have airGateway, airRouter, Bullet M2 and Nanostation M2.
Alternatively I could provide a makeimage script and files folder for Imagebuilder.

It is true that this does seem to only occur on a 32MB device, however the idle free memory does not actually differ much from OpenWrt CC which leads me to suspect some issue in LEDE is using excessive memory, most likely the xz decompression. If found to be true this could make 32MB devices much more stable with LEDE.
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More information can be found at the following URL:
https://bugs.lede-project.org/index.php?do=details&task_id=927#comment3221