The documentation https://www.home-assistant.io/installation/generic-x86-64/ does not indicate that it will install a HAOS imagine to a local disk. There is no information about installing the image to a disk nor selecting a disk. It makes it sound like you will just operate off of USB drive permanently and you instead need to use Method 1.
#Method 2: Installing HAOS directly from a boot medium does it install to disk?
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Also it seems there is no USB size requirements listed in the documentation and it seem my install has errored out on the 8gb drive I used.
No, you use the USB flash drive to write directly to the internal drive
how does happen
Ah I see my issue
i have confused Method 1 with method 2
Method 2 is flashiong and image straight to a hard drive
not create a bootable USB installer that writes the image like any other type of OS installer
one flashes from the machine itself via a USB drive, and the other uses a separate machine to flash to the drive