What does "/scripts/kvmtemplate --mode=prepare" do?

Question

What does command query /scripts/kvmtemplate --mode=prepare from Create KVM Template article do?

Answer

The script /scripts/kvmtemplate is a wrapper for the set of tools provided by libguestfs-tools package and option --mode=prepare invokes the following command:

# virt-sysprep -v -a /path/to/VPS/lvm_image

Virt-sysprep resets or unconfigure a virtual machine so that clones can be made from it.
The command runs most of the operations from this list:
https://libguestfs.org/virt-sysprep.1.html#operations