It seems I got the same inside the new log file

2016-12-06 21:13:31 INFO otopi.plugins.gr_he_setup.vm.runvm mixins._create_vm:149 Creating VM
2016-12-06 21:13:31 DEBUG otopi.plugins.gr_he_setup.vm.runvm mixins._create_vm:281 {'status': {
'message': u'Error creating the requested VM', 'code': 9}}
2016-12-06 21:13:31 DEBUG otopi.context context._executeMethod:142 method exception
Traceback (most recent call last):
  File "/usr/lib/python2.7/site-packages/otopi/context.py", line 132, in _executeMethod
    method['method']()
  File "/usr/share/ovirt-hosted-engine-setup/scripts/../plugins/gr-he-setup/vm/runvm.py", line 168, in _boot_from_hd
    self._create_vm()
  File "/usr/lib/python2.7/site-packages/ovirt_hosted_engine_setup/mixins.py", line 287, in _create_vm
    message=status['status']['message']
RuntimeError: Cannot create the VM: Error creating the requested VM
2016-12-06 21:13:31 ERROR otopi.context context._executeMethod:151 Failed to execute stage 'Closing up': Cannot create the VM: Error creating the requested VM
2016-12-06 21:13:31 ERROR otopi.context context._executeMethod:151 Failed to execute stage 'Closing up': Cannot create the VM: Error creating the requested VM
2016-12-06 21:13:31 DEBUG otopi.context context.dumpEnvironment:760 ENVIRONMENT DUMP - BEGIN
2016-12-06 21:13:31 DEBUG otopi.context context.dumpEnvironment:770 ENV BASE/error=bool:'True'
2016-12-06 21:13:31 DEBUG otopi.context context.dumpEnvironment:770 ENV BASE/exceptionInfo=list:'[(<type 'exceptions.RuntimeError'>, RuntimeError('Cannot create the VM: Error creating the requested VM',), <traceback object at 0x5cd7dd0>)]'

Current packages:
[root@ovirt41 ~]# rpm -qa|grep qemu | grep kvm
qemu-kvm-ev-2.6.0-27.1.el7.x86_64
qemu-kvm-tools-ev-2.6.0-27.1.el7.x86_64
qemu-kvm-common-ev-2.6.0-27.1.el7.x86_64
[root@ovirt41 ~]#

But in vdsm.log I see this message:

2016-12-06 21:13:25,587 ERROR (jsonrpc/6) [root] failed to retrieve Hosted Engine HA info (api:
252)
Traceback (most recent call last):
  File "/usr/lib/python2.7/site-packages/vdsm/host/api.py", line 231, in _getHaInfo
    stats = instance.get_all_stats()
  File "/usr/lib/python2.7/site-packages/ovirt_hosted_engine_ha/client/client.py", line 102, in
 get_all_stats
    with broker.connection(self._retries, self._wait):
  File "/usr/lib64/python2.7/contextlib.py", line 17, in __enter__
    return self.gen.next()
  File "/usr/lib/python2.7/site-packages/ovirt_hosted_engine_ha/lib/brokerlink.py", line 99, in
 connection
    self.connect(retries, wait)
  File "/usr/lib/python2.7/site-packages/ovirt_hosted_engine_ha/lib/brokerlink.py", line 78, in
 connect
    raise BrokerConnectionError(error_msg)
BrokerConnectionError: Failed to connect to broker, the number of errors has exceeded the limit
 (1)
2016-12-06 21:13:25,589 INFO  (jsonrpc/6) [jsonrpc.JsonRpcServer] RPC call Host.getStats succee
ded in 0.01 seconds (__init__:515)
2016-12-06 21:13:31,796 INFO  (jsonrpc/7) [jsonrpc.JsonRpcServer] RPC call VM.getStats failed (
error 1) in 0.00 seconds (__init__:515)
2016-12-06 21:13:31,806 ERROR (jsonrpc/0) [virt.api] FINISH create error=Error creating the requested VM (api:54)
Traceback (most recent call last):
  File "/usr/lib/python2.7/site-packages/vdsm/common/api.py", line 52, in method
    ret = func(*args, **kwargs)
  File "/usr/share/vdsm/API.py", line 220, in create
    'Unknown display type %s' % vmParams.get('display'))
CannotCreateVM: Error creating the requested VM
2016-12-06 21:13:31,808 INFO  (jsonrpc/0) [jsonrpc.JsonRpcServer] RPC call VM.create failed (error 9) in 0.00 seconds (__init__:515)

So I think the problem consists in trying to create engine with qxl video device (that is a right initial option offered...)

I changed the answer file this way

old = <
new = >

< OVEHOSTED_VDSM/consoleType=str:qxl
---
> OVEHOSTED_VDSM/consoleType=str:vnc

and the deploy went ahead creating the VM

[ INFO  ] Creating VM
          You can now connect to the VM with the following command:
                hosted-engine --console
          You can also graphically connect to the VM from your system with the following command:
                remote-viewer vnc://ovirt41.localdomain.local:5900
          Use temporary password "0979VeaN" to connect to vnc console.
          Please ensure that your Guest OS is properly configured to support serial console according to your distro documentation.
          Follow http://www.ovirt.org/Serial_Console_Setup#I_need_to_access_the_console_the_old_way for more info.
          If you need to reboot the VM you will need to start it manually using the command:
          hosted-engine --vm-start
          You can then set a temporary password using the command:
          hosted-engine --add-console-password
[ INFO  ] Running engine-setup on the appliance

But it seems stuck in the bios.... see:
https://drive.google.com/file/d/0BwoPbcrMv8mvSE1mWFVIUEhiRTg/view?usp=sharing