This is an issue described here in this topic. I decided to post it under here becase @jonp showed interest in debugging it.
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I have a VM named Spynet, which has a correct vdisk path by /mnt/user/domains/Skynet/vdisk1.iso
Whenever I edit the template, the template thinks the vdisk location is /mnt/user/domains/Spynet/vdisk1.iso which doesnt actually exist and results in the that dreaded Updating...
The bug here would be, that the template does not remember the manual location and always reverts to auto which always looks for the vdisk inside the VMs namesake folder.
Basically, the reason the VM template hangs at updating is because, the template itself has a wrong path to the vdisk (always uses its VM namesake folder), and no matter how many times you correct it manually, upon next edit it will not remember the correct location.
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