Systemd not starting with INITSYSTEM on

I have crreated a starter project using a raspberry pi v1.
I have the following at the top of my Dockerfile.template

FROM balenalib/%%BALENA_MACHINE_NAME%%-debian:latest

# enable container init system.

Despite this, systemd is not starting and my is process 1.

I’ve tried setting INITSYSTEM on in the service variable and it makes no difference.

Yes, that is expected. In the new balenalib base images we do not provide init systems. Now you will need to install an init system yourself and manage it manually. Please find more information on how to achieve this here:
Kind regards,