Comment 1 for bug 1890290

This is currently expected because the L2 KVM guest uses the historical KVM XICS device (not the XICS-on-XIVE one) and this can be only created once during the VM lifetime for the moment.

This is a limitation in KVM, that can be addressed in several ways:
1) change the historical KVM XICS device to implement the release() method instead of destroy(), so that userspace can close() and re-create the device multiple times during the VM lifetime, as we have already done in KVM XIVE and KVM XICS-on-XIVE for powernv
2) have the KVM XICS-on-XIVE device to work under pseries

I already have a tentative patch for 1) and I guess 2) would be part of a more global work to supporting nested KVM XIVE.

But it is definitely not an issue in QEMU.