[qubes-template-kali] Installation fails with 'disk quota exceeded' error

Template is not going to be installed in dom0 (lvm thin pool of 20GB). It’s just for transferring from local RPM transaction to vm thin pool. Yes kali template is a little bit big but it’s the default. Currently your issue is that dom0 is not having enough place to extract the RPM…You can try to make some place, eventually clear the log: journalctl --vacuum-time=1d to gain this missing space on /. We are currently thinking on how to solve dom0 space (e.g. remove packages pulled by default with other default packages). This is new in 4.1 where we split dom0/VM thin pool in order to easily make dom0 snapshots.

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