Hi neel
I just tested the latest image and ran into the same issue as you when using BalenaEtcher — it failed during the verification step with a “writer process ended unexpectedly” error.
However, I was able to flash it successfully using the official Raspberry Pi Imager instead. You can grab it here:
🔗 https://www.raspberrypi.com/software/
Just select “Use Custom” and point it to the image file you downloaded.
Also, yes — the new image is packaged differently than the previous version. It uses the .xz compression format (same as the official Raspberry Pi OS releases), whereas older ones were in .7z. Functionally it's the same type of image inside, just wrapped in a different archive format.
I’ll dig in a bit more and share updates, but in the meantime give the Pi Imager a shot and let me know if it works.
Thanks,
Oskar