I ran through this again to regenerate the logs. It's been 100% repeatable for me on a fresh 7.4 install, running 'hosted-engine --deploy' or the preconfigured storage option in the cockpit oVirt UI. Deploying hyperconverged from the cockpit UI worked, however. Attaching contents of /var/log from hosted-engine and the physical host.
This is what I got from 'journalctl -u vdsmd', wasn't reflected in VDSM logs.
May 01 11:01:27 sum-glovirt-05.dy.gl systemd[1]: Starting Virtual Desktop Server Manager...
May 01 11:01:27 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: vdsm: Running mkdirs
May 01 11:01:27 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: vdsm: Running configure_coredump
May 01 11:01:27 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: vdsm: Running configure_vdsm_logs
May 01 11:01:27 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: vdsm: Running wait_for_network
May 01 11:01:27 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: vdsm: Running run_init_hooks
May 01 11:01:27 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: vdsm: Running check_is_configured
May 01 11:01:27 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: abrt is already configured for vdsm
May 01 11:01:27 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: lvm is configured for vdsm
May 01 11:01:27 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: libvirt is already configured for vdsm
May 01 11:01:27 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: Current revision of multipath.conf detected, preserving
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: schema is already configuredvdsm: Running validate_configuration
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: SUCCESS: ssl configured to true. No conflicts
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: vdsm: Running prepare_transient_repository
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: vdsm: Running syslog_available
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: vdsm: Running nwfilter
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: libvirt: Network Filter Driver error : this function is not supported by the connection driver: virNWFilterLookupByName
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: libvirt: Network Filter Driver error : this function is not supported by the connection driver: virNWFilterDefineXML
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: Traceback (most recent call last):
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: File "/usr/bin/vdsm-tool", line 219, in main
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: return tool_command[cmd]["command"](*args)
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: File "/usr/lib/python2.7/site-packages/vdsm/tool/nwfilter.py", line 40, in main
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: NoMacSpoofingFilter().defineNwFilter(conn)
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: File "/usr/lib/python2.7/site-packages/vdsm/tool/nwfilter.py", line 76, in defineNwFilter
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: nwFilter = conn.nwfilterDefineXML(self.buildFilterXml())
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: File "/usr/lib/python2.7/site-packages/vdsm/common/libvirtconnection.py", line 130, in wrapper
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: ret = f(*args, **kwargs)
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: File "/usr/lib/python2.7/site-packages/vdsm/common/function.py", line 92, in wrapper
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: return func(inst, *args, **kwargs)
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: File "/usr/lib64/python2.7/site-packages/libvirt.py", line 4279, in nwfilterDefineXML
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: if ret is None:raise libvirtError('virNWFilterDefineXML() failed', conn=self)
May 01 11:01:28 sum-glovirt-05.dy.gl vdsmd_init_common.sh[15467]: libvirtError: this function is not supported by the connection driver: virNWFilterDefineXML
May 01 11:01:28 sum-glovirt-05.dy.gl systemd[1]: vdsmd.service: control process exited, code=exited status=1
May 01 11:01:28 sum-glovirt-05.dy.gl systemd[1]: Failed to start Virtual Desktop Server Manager.
May 01 11:01:28 sum-glovirt-05.dy.gl systemd[1]: Unit vdsmd.service entered failed state.
May 01 11:01:28 sum-glovirt-05.dy.gl systemd[1]: vdsmd.service failed.
May 01 11:01:29 sum-glovirt-05.dy.gl systemd[1]: vdsmd.service holdoff time over, scheduling restart.
May 01 11:01:29 sum-glovirt-05.dy.gl systemd[1]: start request repeated too quickly for vdsmd.service
May 01 11:01:29 sum-glovirt-05.dy.gl systemd[1]: Failed to start Virtual Desktop Server Manager.
May 01 11:01:29 sum-glovirt-05.dy.gl systemd[1]: Unit vdsmd.service entered failed state.
May 01 11:01:29 sum-glovirt-05.dy.gl systemd[1]: vdsmd.service failed.