Eyal,
This test looks like a victim rather than an offender.
At the moment it tries to assign a label, host1 is VDS_HOST_NOT_RESPONDING because of "FullListVDS failed: Unrecognized message received".
I think that in [1] a response to Host.getVMFullList from VDSM is incomplete and as a result the host is declared as "not responding".
[1] http://jenkins.ovirt.org/view/experimental%20jobs/job/test-repo_ovirt_experimental_master/5673/artifact/exported-artifacts/basic-suit-master-el7/test_logs/basic-suite-master/post-005_network_by_label.py/lago-basic-suite-master-engine/_var_log/ovirt-engine/engine.log
2017-03-05 06:12:12,030-05 INFO [org.ovirt.engine.core.vdsbroker.vdsbroker.FullListVDSCommand] (DefaultQuartzScheduler3) [] START, FullListVDSCommand(HostName = lago-basic-suite-master-host1, FullListVDSCommandParameters:{runAsync='true', hostId='dae8590a-e672-44b0-8be2-f5e019641314', vmIds='[b0b35145-95eb-40cb-a46c-17937a2d67ef]'}), log id: 2327aeb9
2017-03-05 06:12:12,030-05 DEBUG [org.ovirt.vdsm.jsonrpc.client.reactors.stomp.impl.Message] (DefaultQuartzScheduler3) [] SEND
destination:jms.topic.vdsm_requests
reply-to:jms.topic.vdsm_responses
content-length:152
{"jsonrpc":"2.0","method":"Host.getVMFullList","params":{"vmList":["b0b35145-95eb-40cb-a46c-17937a2d67ef"]},"id":"2189a48e-fc88-43fe-b5d1-ec3d82d0587a"}�
2017-03-05 06:12:12,030-05 DEBUG [org.ovirt.vdsm.jsonrpc.client.reactors.stomp.StompCommonClient] (DefaultQuartzScheduler3) [] Message sent: SEND
destination:jms.topic.vdsm_requests
content-length:152
reply-to:jms.topic.vdsm_responses
<JsonRpcRequest id: "2189a48e-fc88-43fe-b5d1-ec3d82d0587a", method: Host.getVMFullList, params: {vmList=[b0b35145-95eb-40cb-a46c-17937a2d67ef]}>
2017-03-05 06:12:12,062-05 DEBUG [org.ovirt.vdsm.jsonrpc.client.reactors.stomp.impl.Message] (SSL Stomp Reactor) [48435f7c] �MESSAGE
content-length:12133
destination:jms.topic.vdsm_responses
content-type:application/json
subscription:88ae7775-7c8f-4489-ad0e-6fd40d9990ea
{"jsonrpc": "2.0", "id": "2189a48e-fc88-43fe-b5d1-ec3d82d0587a", "result": [{"acpiEnable": "true", "emulatedMachine": "pc-i440fx-rhel7.3.0", "afterMigrationStatus": "", "pid": "19518", "memGuaranteedSize": 256, "transparentHugePages": "false", "timeOffset": "0", "cpuType": "Westmere", "smp": "1", "guestNumaNodes": [{"nodeIndex": 0, "cpus": "0", "memory": "512"}], "smartcardEnable": "true", "custom": {}, "vmType": "kvm", "memSize": 512, "smpCoresPerSocket": "1", "vmName": "vm0", "nice": "0", "status": "Up", "maxMemSize": 4096, "bootMenuEnable": "false", "vmId": "b0b35145-95eb-40cb-a46c-17937a2d67ef", "smpThreadsPerCore": "1", "agentChannelName": "ovirt-guest-agent.0", "guestDiskMapping": {}, "kvmEnable": "true", "pitReinjection": "false", "displayNetwork": "ovirtmgmt", "devices": [{"alias": "sound0", "specParams": {}, "deviceId": "e71ac881-b31e-4986-a68a-574f22fbfc
2017-03-05 06:12:12,062-05 DEBUG [org.ovirt.vdsm.jsonrpc.client.reactors.stomp.impl.Message] (SSL Stomp Reactor) [48435f7c] Message received: �MESSAGE
content-length:12133
destination:jms.topic.vdsm_responses
content-type:application/json
subscription:88ae7775-7c8f-4489-ad0e-6fd40d9990ea
{"jsonrpc": "2.0", "id": "2189a48e-fc88-43fe-b5d1-ec3d82d0587a", "result": [{"acpiEnable": "true", "emulatedMachine": "pc-i440fx-rhel7.3.0", "afterMigrationStatus": "", "pid": "19518", "memGuaranteedSize": 256, "transparentHugePages": "false", "timeOffset": "0", "cpuType": "Westmere", "smp": "1", "guestNumaNodes": [{"nodeIndex": 0, "cpus": "0", "memory": "512"}], "smartcardEnable": "true", "custom": {}, "vmType": "kvm", "memSize": 512, "smpCoresPerSocket": "1", "vmName": "vm0", "nice": "0", "status": "Up", "maxMemSize": 4096, "bootMenuEnable": "false", "vmId": "b0b35145-95eb-40cb-a46c-17937a2d67ef", "smpThreadsPerCore": "1", "agentChannelName": "ovirt-guest-agent.0", "guestDiskMapping": {}, "kvmEnable": "true", "pitReinjection": "false", "displayNetwork": "ovirtmgmt", "devices": [{"alias": "sound0", "specParams": {}, "deviceId": "e71ac881-b31e-4986-a68a-574f22fbfc
2017-03-05 06:12:12,063-05 DEBUG [org.ovirt.vdsm.jsonrpc.client.reactors.Reactor] (SSL Stomp Reactor) [48435f7c] Unable to process messages Unrecognized message received : org.ovirt.vdsm.jsonrpc.client.ClientConnectionException: Unrecognized message received
at org.ovirt.vdsm.jsonrpc.client.reactors.stomp.impl.Message.parse(Message.java:219) [vdsm-jsonrpc-java-client.jar:]
at org.ovirt.vdsm.jsonrpc.client.reactors.stomp.StompCommonClient.getMessage(StompCommonClient.java:171) [vdsm-jsonrpc-java-client.jar:]