bhyveloader / userboot - VM installation fails

[Paw Nishi]

Currently playing with bhyve on bare metal with vm-bhyve 

Created a zvol 
Setup the zvol as disk0 in config 
Installed VM with FreeBSD-11.0-bootonly ISO 
Select ZFS as type with encryption. 
Install successful 
Restart VM, 

Displays following: 
Consoles: userboot 

FreeBSD/amd64 User boot, Revision 1.1 
(root at releng2.nyi.freebsd.org, Thu Sep 29 01:38:36 UTC 2016) 
- 
can't load 'kernel' 

Type '?' for a list of commands, 'help' for more detailed help. 

OK lsdev 
host devices: 
host0: Host filesystem 
disk devices: 
disk0: Guest drive image 
disk0p1: FreeBSD boot 
disk0p2: FreeBSD swap 
disk0p3: FreeBSD ZFS 
zfs devices: 

What is the next to get it to boot, or can I only use UFS when running in bhyve? 
I did read a previous mail from 2012 (https://lists.freebsd.org/pipermail/freebsd-virtualization/2012-December/001031.html) - it's now 2017 and this still an issue? 

thxs