@Wayne-Workman I wasn’t questioning the use of Ubuntu 12.04. I actually still use it on my fog servers. my question was mostly regarding the rational behind the older-OS on VM inside newer-OS arrangement.

/tmp/pigz1 is a temporary location where data is streamed for compression/decompression. that part of your system seems to be running fine. what it sounds like, however, is that your drive is not being re-sized to fill the disk after imaging completes.
what version of fog are you using?
i’m assuming this is a resizable image, is that correct?