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I believe this is similar to EC2 Fast Launch which is available for Windows AMIs, but I don't know exactly how that works under the hood.

https://docs.aws.amazon.com/AWSEC2/latest/WindowsGuide/win-a...

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It does launch an instance and take a snapshot but what's happening is the sysprep and OOBE stuff that can take 10 mins or so (you can find it in the console and startup logs). That's a lot more overheard than just hydrating an EBS volume.

https://docs.aws.amazon.com/AWSEC2/latest/WindowsGuide/win-a...

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