Hi, I’m having the same problem. I’m running the very latest Windows 10 Preview and as far as I can see systemd is supported. However, I have the same error messages due to snapd not being started. I’ve started started snapd manually, which seems to work. However, now I have the mentioned issue with squashfs. Looking into that.
UPDATE: this is the error I get
unsquashfs -i -d /tmp/read-file468023474/unpack
/tmp/snapd-sideload-pkg-827422431 meta/snap.yaml" failed: exit status 1 ("Read on filesystem
failed because EOF