diff --git a/vanilla_installer/utils/processor.py b/vanilla_installer/utils/processor.py
index 6e476ce8..af9a5a85 100644
--- a/vanilla_installer/utils/processor.py
+++ b/vanilla_installer/utils/processor.py
@@ -544,12 +544,20 @@ def gen_install_recipe(log_path, finals, sys_recipe):
             # Create default user
             # This needs to be done after mounting `/etc` overlay, so set it as
             # late post-install
+            recipe.add_postinstall_step(
+                "shell",
+                [
+                    "groupadd -g 1201 vanilla-first-setup",
+                ],
+                chroot=True,
+                late=True,
+            )
             recipe.add_postinstall_step(
                 "adduser",
                 [
                     "vanilla",
                     "vanilla",
-                    ["sudo", "lpadmin"],
+                    ["sudo", "lpadmin", "vanilla-first-setup"],
                     "vanilla",
                     1200,
                 ],