diff --git a/examples/autoinstall/hybrid.yaml b/examples/autoinstall/hybrid.yaml
new file mode 100644
index 000000000..e6dee1734
--- /dev/null
+++ b/examples/autoinstall/hybrid.yaml
@@ -0,0 +1,10 @@
+version: 1
+source:
+  id: src-mandatory
+storage:
+  layout:
+    name: hybrid
+identity:
+    hostname: ai-test
+    password: "$y$j9T$UdY22v4Kexn/AZcIzBSUc0$2DnuvWDSwoDCFPlbk1ghZeT2qFrEBKY1bpFQoexHdw7"
+    username: ubuntu
diff --git a/scripts/runtests.sh b/scripts/runtests.sh
index fd2e3023a..893471e36 100755
--- a/scripts/runtests.sh
+++ b/scripts/runtests.sh
@@ -267,6 +267,19 @@ python3 scripts/check-yaml-fields.py "$tmpdir"/var/log/installer/autoinstall-use
         'autoinstall.source.id="ubuntu-server-minimal"'
 grep -q 'finish: subiquity/Install/install/postinstall/run_unattended_upgrades: SUCCESS: downloading and installing security updates' $tmpdir/subiquity-server-debug.log
 
+clean
+LANG=C.UTF-8 timeout --foreground 60 \
+    python3 -m subiquity.cmd.tui \
+    --dry-run \
+    --output-base "$tmpdir" \
+    --machine-config examples/machines/simple.json \
+    --autoinstall examples/autoinstall/hybrid.yaml \
+    --dry-run-config examples/dry-run-configs/tpm.yaml \
+    --bootloader uefi \
+    --kernel-cmdline autoinstall \
+    --source-catalog examples/sources/tpm.yaml
+validate
+
 clean
 LANG=C.UTF-8 timeout --foreground 60 \
     python3 -m subiquity.cmd.tui \
diff --git a/subiquity/server/controllers/filesystem.py b/subiquity/server/controllers/filesystem.py
index 72f12dd42..4d9513949 100644
--- a/subiquity/server/controllers/filesystem.py
+++ b/subiquity/server/controllers/filesystem.py
@@ -1145,12 +1145,13 @@ async def run_autoinstall_guided(self, layout):
         if name == 'hybrid':
             # this check is conceptually unnecessary but results in a
             # much cleaner error message...
+            core_boot_caps = set()
             for variation in self._variation_info.values():
                 if not variation.is_valid():
                     continue
                 if variation.is_core_boot_classic():
-                    break
-            else:
+                    core_boot_caps.update(variation.capability_info.allowed)
+            if not core_boot_caps:
                 raise Exception(
                     "can only use name: hybrid when installing core boot "
                     "classic")
@@ -1160,15 +1161,15 @@ async def run_autoinstall_guided(self, layout):
             encrypted = layout.get('encrypted', None)
             GC = GuidedCapability
             if encrypted is None:
-                if GC.CORE_BOOT_ENCRYPTED in self._info.capabilities or \
-                   GC.CORE_BOOT_PREFER_ENCRYPTED in self._info.capabilities:
+                if GC.CORE_BOOT_ENCRYPTED in core_boot_caps or \
+                   GC.CORE_BOOT_PREFER_ENCRYPTED in core_boot_caps:
                     capability = GC.CORE_BOOT_ENCRYPTED
                 else:
                     capability = GC.CORE_BOOT_UNENCRYPTED
             elif encrypted:
                 capability = GC.CORE_BOOT_ENCRYPTED
             else:
-                if self._info.capabilities == {
+                if core_boot_caps == {
                         GuidedCapability.CORE_BOOT_ENCRYPTED} and \
                    not encrypted:
                     raise Exception("cannot install this model unencrypted")
diff --git a/subiquity/server/controllers/tests/test_filesystem.py b/subiquity/server/controllers/tests/test_filesystem.py
index df2021180..f70c3092e 100644
--- a/subiquity/server/controllers/tests/test_filesystem.py
+++ b/subiquity/server/controllers/tests/test_filesystem.py
@@ -1226,6 +1226,35 @@ async def test_from_sample_data(self):
         self.assertEqual(request.action, snapdapi.SystemAction.INSTALL)
         self.assertEqual(request.step, snapdapi.SystemActionStep.FINISH)
 
+    async def test_from_sample_data_autoinstall(self):
+        # calling this a unit test is definitely questionable. but it
+        # runs much more quickly than the integration test!
+        self.fsc.model = model = make_model(Bootloader.UEFI)
+        disk = make_disk(model)
+        self.app.base_model.source.current.variations = {
+            'default': CatalogEntryVariation(
+                path='', size=1, snapd_system_label='prefer-encrypted'),
+            }
+
+        self.app.dr_cfg.systems_dir_exists = True
+
+        await self.fsc._examine_systems_task.start()
+        await self.fsc._examine_systems_task.wait()
+        self.fsc.start()
+
+        await self.fsc.run_autoinstall_guided({'name': 'hybrid'})
+
+        self.assertEqual(model.storage_version, 2)
+
+        partition_count = len([
+            structure
+            for structure in self.fsc._info.system.volumes['pc'].structure
+            if structure.role != snapdapi.Role.MBR
+            ])
+        self.assertEqual(
+            partition_count,
+            len(disk.partitions()))
+
     async def test_from_sample_data_defective(self):
         self.fsc.model = model = make_model(Bootloader.UEFI)
         make_disk(model)