Linux Template Tweaking
Opt for a kernel purpose-built for virtualization
Go with linux-image-kvm kernel, which is specifically designed for KVM virtualization.
For instance, on Ubuntu you can run:
apt install linux-image-kvm apt purge linux-image-generic
Tidy up before publishing a template
# removes logs journalctl --vacuum-size=1 # removes user history history -c
(as root) rm /root/.bash_history