It doesn't need all local filesystems, only /, /run, /proc/xen and loaded modules.
@@ -2,7 +2,7 @@
Description=Init Qubes Services settings
DefaultDependencies=no
Before=sysinit.target
-After=local-fs.target
+After=proc-xen.mount systemd-modules-load.service
[Service]
Type=oneshot