Looked into CPU settings for KVM. Looks like nested virtualization is not the default behavior in KVM.

Check for Nested Virtualization:

sudo virt-host-validate 


[root@ovirt1 ~]# sudo virt-host-validate

  QEMU: Checking for hardware virtualization                                 : FAIL (Only emulated CPUs are available, performance will be significantly limited)

  QEMU: Checking if device /dev/vhost-net exists                             : PASS

  QEMU: Checking if device /dev/net/tun exists                               : PASS


Follow the following to enable nested virt :

https://www.server-world.info/en/note?os=CentOS_7&p=kvm&f=7 


Shut down the node VMs. Check the "Copy host CPU configuration checkbox".

 

I was able to proceed to hosted engine installation.


Regards,

HK


On Wed, Nov 15, 2017 at 1:06 AM, Open tech <opentech101@gmail.com> wrote:
Hi All,
 I am trying to build a Ovirt node/Gluster Storage and Hosted Engine lab using nested virtualization.
I have been following this tutorial.
https://www.ovirt.org/blog/2017/04/up-and-running-with-ovirt-4.1-and-gluster-storage/

First I tried on ESXi 6.5. Got three nodes installed with dual networks & passwordless ssh enabled. Ran the Hosted Engine with Gluster install via the Ovirt node. It ran successfully.

Went to "continue with hosted engine deployment"

 Hosted Engine deployment failed with error.
 
 Failed to execute stage 'Environment setup': Hardware does not support virtualization
 Hosted Engine deployment failed

Went over some message boards. seemed like ovirt nested virtualization would not be supported on ESXi.

Spent another day building the whole thing again from scratch on CentOS/KVM

I am getting the same error with KVM as well. 

Going over some discussions I gather that this should be supported.

Any ideas on what might be the issue here. Any setting on KVM virtual machine etc that might help here ?.

Log file is attached

Regards,
HK