@dashwell Well you said you updated from an older version and you think the update is causing this problem. While I still don’t think the update caused this I still was wondering what version you used before.
Back to the problem: The error is pretty clear. The image was taken from a larger size disk. Probably using an older version of FOG which did only shrink but not rearange partitions (to fill the empty gaps). The version you currently use (20220203) is capable of rearanging partitions but you need to re-capture the image with that version to make use of it. So I suggest you grab a machine with a disk large enough, deploy that old image to it. Then create a new image definition within the FOG web UI (to keep the old one as backup), set this new image for the machine you just deployed the old image to, schedule a capture to the fresh image definition and then try to deploy this new image to smaller size drives.