Fedora Linux currently makes use of SquashFS as the file-system for its live installation media but this would change to EROFS under a new F42 change proposal. All Kiwi-produced live media beginning with Fedora 42 would change over to EROFS along with the Fedora CoreOS live media. Kiwi-produced media currently consists of the likes of the Fedora KDE Desktop, Fedora Budgie, Fedora Xfce, Fedora COSMIC, etc, while more spins/editions may change over in time.
The Fedora 42 change proposal argues that EROFS is more actively developed than SquashFS and supports more modern file-system features that can in turn be utilized in the future.
This change proposal is just about the live media with EROFS being a read-only file-system. EROFS has gained a lot of features and optimizations over the years since its original upstreaming by Huawei back in 2019. EROFS sees a lot of use especially among mobile/embedded devices as well as containers.
The change proposal for considering EROFS over SquashFS for live media beginning in Fedora 42 can be found via the Fedora Wiki . The change still needs to be voted on by the Fedora Engineering and Steering Committee (FESCo).