diff --git a/src/components/CreateVmWizard/CreateVmWizard.js b/src/components/CreateVmWizard/CreateVmWizard.js
index 21de29357d..0b1df2e53f 100644
--- a/src/components/CreateVmWizard/CreateVmWizard.js
+++ b/src/components/CreateVmWizard/CreateVmWizard.js
@@ -362,10 +362,16 @@ class CreateVmWizard extends React.Component {
                   const canUserUseStorageDomain =
                     !!dataCenterStorageDomainsList.find(sd => sd.id === disk.get('storageDomainId'))
 
+                  /*
+                   * To be consistent with webadmin VM creation from a template:
+                   *   - desktop: diskType forced to 'thin' (match storage allocation = Thin)
+                   *   - server: diskType as defined in the template (match storage allocation = Clone)
+                   *   - any other optimizedFor: follow server's logic
+                   */
                   const diskType = // constrain to values from createDiskTypeList()
-                    this.state.steps.basic.optimizedFor === 'desktop'
+                    this.state.steps.basic.optimizedFor !== 'desktop'
                       ? disk.get('sparse') ? 'thin' : 'pre'
-                      : 'pre'
+                      : 'thin'
 
                   return {
                     id: disk.get('attachmentId'),
diff --git a/src/sagas/vmChanges.js b/src/sagas/vmChanges.js
index 034995d679..446feb701f 100644
--- a/src/sagas/vmChanges.js
+++ b/src/sagas/vmChanges.js
@@ -198,23 +198,23 @@ function* composeProvisionSourceTemplate ({ vm, basic, disks }) {
         id: disk.id,
       }
 
+      // did the diskType change?  'thin' === sparse, 'pre' === !sparse
+      const templateDiskType = templateDisk.get('sparse') ? 'thin' : 'pre'
+      if (disk.diskType !== templateDiskType) {
+        changesToTemplateDisk.sparse = disk.diskType === 'thin'
+        changesToTemplateDisk.format = disk.diskType === 'thin' ? 'cow' : 'sparse'
+      }
+
       // did the storage domain change?
       if (disk.storageDomainId !== templateDisk.get('storageDomainId')) {
+        vmRequiresClone = true
         changesToTemplateDisk.format = 'raw'
         changesToTemplateDisk.storage_domains = {
           storage_domain: [{ id: disk.storageDomainId }],
         }
       }
 
-      // did the diskType (disk's sparse ) change?  'thin' === sparse, 'pre' === !sparse
-      const templateDiskType = templateDisk.get('sparse') ? 'thin' : 'pre'
-      if (disk.diskType !== templateDiskType) {
-        changesToTemplateDisk.sparse = disk.diskType === 'thin'
-      }
-
       if (Object.keys(changesToTemplateDisk).length > 1) {
-        vmRequiresClone = true
-
         if (vmUpdates.disk_attachments) {
           // add another disk to clone
           vmUpdates.disk_attachments.disk_attachment.push({ disk: changesToTemplateDisk })