Ok, it seems that this is the default formatting that Hetzner uses. They don't talk about it anywhere in their documentation, but they mention that their images contain support for ext2/3/4, reiserfs and xfs. The issue that I ran into here is the fact that the xfs drive, was formatted without CRC enabled, which forces it to be V4 of xfs not V5. And V4 is being deprecated. I am still in the process of making a full clean cold backup of the machine. But I will just try reformatting the drive.