Once a machine is created from the disk image, it can apply transactional updates "in place" from newly pushed container images (without creating a new disk image). For more information, see bootc.
There are many projects at work at creating "bootc" images. Below is a non-exhaustive list of compatible images which are known to work with bootc-image-builder.
On Linux, you are unable to create a Podman Machine through the GUI of Podman Desktop, to create a rootful Podman Machine you can run the following commands:
A version of the extension using the latest commit changes can be installed via the Install custom... button with the following link:
Preferences such as the default bootc-builder-image as well as timeouts can be adjusted within the Preferences section of Podman Desktop.