In order to get custom images to work on Waydroid, there are just a couple extra steps needed.
First, download the images (e.g. x86_64 gapps system and mainline vendor) manually from sourceforge or use your custom built system.img and vendor.img produced from following the Compile Instructions.
Then copy/move them to the following folder:
/etc/waydroid-extra/images//usr/share/waydroid-extra/images/ used to be the previously preferred path before waydroid --version 1.3.3 (it still is perfectly valid however right now as well).
An example of setting up from downloaded sourceforce zips (assuming terminal open in the directory where they were downloaded):
sudo mkdir -p /etc/waydroid-extra/imagessudo unzip lineage-*-system.zip -d /etc/waydroid-extra/imagessudo unzip lineage-*-vendor.zip -d /etc/waydroid-extra/imagesrm lineage-*-system.zip lineage-*-vendor.zipThen we need to re-init Waydroid in order for it to use the custom images:
sudo waydroid init -f