nova-compute unable to launch libguestfs using the default qemu:///system URI

[Rajesh Tailor]

nova-compute is unable to launch libguestfs using libvirt:qemu:///system when inject_password is set to true in nova.conf using below templates content.
~~~
parameter_defaults:
  ComputeExtraConfig:
    nova::compute::libvirt::libvirt_cpu_mode: 'host-passthrough'
    nova::compute::libvirt::libvirt_inject_password: 'true'
    nova::compute::libvirt::libvirt_inject_partition: '-1'
~~~

Below error is raised when trying to create vm.

2021-01-18 05:12:35.962 7 INFO nova.virt.libvirt.driver [req-310437a5-8d38-4976-9bf6-d753dbd599dd a023896ce6a9457ca8239000d4c0be63 e465d2a3141344b59a435ff6236b91c1 - default default] [instance: b119647c-8607-4b3e-88f3-5a637daa14c6] Creating image
2021-01-18 05:12:39.202 7 WARNING nova.compute.manager [req-3849df0c-a5df-4db2-b4d9-a0277a386019 - - - - -] While synchronizing instance power states, found 1 instances in the database and 0 instances on the hypervisor.
2021-01-18 05:12:45.749 7 WARNING nova.virt.disk.api [req-310437a5-8d38-4976-9bf6-d753dbd599dd a023896ce6a9457ca8239000d4c0be63 e465d2a3141344b59a435ff6236b91c1 - default default] Ignoring error injecting data into image <LocalFileImage:{'format': 'qcow2', 'path': '/var/lib/nova/instances/b119647c-8607-4b3e-88f3-5a637daa14c6/disk'}> (libguestfs installed but not usable (could not create appliance through libvirt.

Try running qemu directly without libvirt using this environment variable:
export LIBGUESTFS_BACKEND=direct

Original error from libvirt: Cannot access storage file '/tmp/libguestfsWvxuML/overlay2.qcow2' (as uid:107, gid:107): No such file or directory [code=38 int1=2])): nova.exception.NovaException: libguestfs installed but not usable (could not create appliance through libvirt.
2021-01-18 05:12:45.799 7 INFO os_vif [req-310437a5-8d38-4976-9bf6-d753dbd599dd a023896ce6a9457ca8239000d4c0be63 e465d2a3141344b59a435ff6236b91c1 - default default] Successfully plugged vif VIFOpenVSwitch(active=False,address=fa:16:3e:eb:76:98,bridge_name='br-int',has_traffic_filtering=True,id=5ef5ed3f-3aba-466c-94b0-a27dace191bc,network=Network(54c673a4-2a17-4718-b9d1-af0462fbd869),plugin='ovs',port_profile=VIFPortProfileOpenVSwitch,preserve_on_delete=False,vif_name='tap5ef5ed3f-3a')

[OpenStack Infra (hudson-openstack)]

This issue was fixed in the openstack/tripleo-heat-templates 13.2.0 release.

[OpenStack Infra (hudson-openstack)]

This issue was fixed in the openstack/tripleo-heat-templates 11.5.0 release.

[OpenStack Infra (hudson-openstack)]

This issue was fixed in the openstack/tripleo-heat-templates 12.4.3 release.

[OpenStack Infra (hudson-openstack)]

This issue was fixed in the openstack/tripleo-heat-templates 14.1.0 release.

[OpenStack Infra (hudson-openstack)]

This issue was fixed in the openstack/tripleo-heat-templates queens-eol release.