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[ubuntu] libvirt: Windows 11 guest nested virtualization not working

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Host OS : Ubuntu 24.04
CPU : i9-9900k
Guest OS : Windows 11
libvirt version: 10.0.0-2ubuntu8.4

Hyper-V does not work with the following error when booting a Windows guest:
> Hypervisor launch failed; The hypervisor was unable to initialize successfully (phase 0x7), and was not started. This initialization failure may be the result of a platform configuration or firmware issue.

/sys/module/kvm_intel/parameters:
- allow_smaller_maxphyaddr: N
- dump_invalid_vmcs: N
- emulate_invalid_guest_state: Y
- enable_apicv: N
- enable_ipiv: N
- enable_shadow_vmcs: Y
- enlightened_vmcs: N
- ept: Y
- eptad: Y
- error_on_inconsistent_vmcs_config: Y
- fasteoi: Y
- flexpriority: Y
- nested: Y
- nested_early_check: N
- ple_gap: 128
- ple_window: 4096
- ple_window_grow: 2
- ple_window_max: 4294967295
- ple_window_shrink: 0
- pml: Y
- preemption_timer: Y
- pt_mode: 0
- sgx: Y
- unrestricted_guest: Y
- vmentry_l1d_flush: not required
- vnmi: Y
- vpid: Y

Note that without `<feature policy="disable" name="waitpkg"/>`, Windows will not boot and will crash.

Code:

<domain type="kvm">
  <name>windows-main-vm</name>
  <uuid>3844e178-d039-4c86-adc8-05a593a60553</uuid>
  <metadata>
    <libosinfo:libosinfo xmlns:libosinfo="http://libosinfo.org/xmlns/libvirt/domain/1.0">
      <libosinfo:os id="http://microsoft.com/win/11"/>
    </libosinfo:libosinfo>
  </metadata>
  <memory unit="KiB">20971520</memory>
  <currentMemory unit="KiB">20971520</currentMemory>
  <vcpu placement="static">8</vcpu>
  <os firmware="efi">
    <type arch="x86_64" machine="pc-q35-8.2">hvm</type>
    <firmware>
      <feature enabled="no" name="enrolled-keys"/>
      <feature enabled="yes" name="secure-boot"/>
    </firmware>
    <loader readonly="yes" secure="yes" type="pflash">/usr/share/OVMF/OVMF_CODE_4M.secboot.fd/loader>
    <nvram template="/usr/share/OVMF/OVMF_VARS_4M.ms.fd">/var/lib/libvirt/qemu/nvram/windows-main-vm_VARS.fd</nvram>
  </os>
  <features>
    <acpi/>
    <apic/>
    <hyperv mode="custom">
      <relaxed state="on"/>
      <vapic state="on"/>
      <spinlocks state="on" retries="8191"/>
      <vpindex state="on"/>
      <runtime state="on"/>
      <synic state="on"/>
      <stimer state="on">
        <direct state="on"/>
      </stimer>
      <reset state="on"/>
      <ipi state="on"/>
      <evmcs state="on"/>
    </hyperv>
    <smm state="on"/>
    <ioapic driver="kvm"/>
  </features>
  <cpu mode="host-passthrough" check="none" migratable="on">
    <topology sockets="1" dies="1" cores="8" threads="1"/>
    <feature policy="require" name="vmx"/>
    <feature policy="require" name="aes"/>
    <feature policy="disable" name="hypervisor"/>
    <feature policy="disable" name="waitpkg"/>
  </cpu>
  <clock offset="localtime">
    <timer name="rtc" tickpolicy="catchup"/>
    <timer name="pit" tickpolicy="delay"/>
    <timer name="hpet" present="no"/>
    <timer name="hypervclock" present="yes"/>
  </clock>
  <on_poweroff>destroy</on_poweroff>
  <on_reboot>restart</on_reboot>
  <on_crash>destroy</on_crash>
  <pm>
    <suspend-to-mem enabled="no"/>
    <suspend-to-disk enabled="no"/>
  </pm>
  <devices>
    <emulator>/usr/bin/qemu-system-x86_64</emulator>
    <disk type="file" device="disk">
      <driver name="qemu" type="qcow2" discard="unmap"/>
      <source file="/var/lib/libvirt/images/windows-vm.qcow2"/>
      <target dev="sda" bus="sata"/>
      <boot order="1"/>
      <address type="drive" controller="0" bus="0" target="0" unit="0"/>
    </disk>
    <controller type="usb" index="0" model="qemu-xhci" ports="15">
      <address type="pci" domain="0x0000" bus="0x02" slot="0x00" function="0x0"/>
    </controller>
    <controller type="pci" index="0" model="pcie-root"/>
    <controller type="pci" index="1" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="1" port="0x10"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x02" function="0x0" multifunction="on"/>
    </controller>
    <controller type="pci" index="2" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="2" port="0x11"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x02" function="0x1"/>
    </controller>
    <controller type="pci" index="3" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="3" port="0x12"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x02" function="0x2"/>
    </controller>
    <controller type="pci" index="4" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="4" port="0x13"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x02" function="0x3"/>
    </controller>
    <controller type="pci" index="5" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="5" port="0x14"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x02" function="0x4"/>
    </controller>
    <controller type="pci" index="6" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="6" port="0x15"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x02" function="0x5"/>
    </controller>
    <controller type="pci" index="7" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="7" port="0x16"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x02" function="0x6"/>
    </controller>
    <controller type="pci" index="8" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="8" port="0x17"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x02" function="0x7"/>
    </controller>
    <controller type="pci" index="9" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="9" port="0x18"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x03" function="0x0" multifunction="on"/>
    </controller>
    <controller type="pci" index="10" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="10" port="0x19"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x03" function="0x1"/>
    </controller>
    <controller type="pci" index="11" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="11" port="0x1a"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x03" function="0x2"/>
    </controller>
    <controller type="pci" index="12" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="12" port="0x1b"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x03" function="0x3"/>
    </controller>
    <controller type="pci" index="13" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="13" port="0x1c"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x03" function="0x4"/>
    </controller>
    <controller type="pci" index="14" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="14" port="0x1d"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x03" function="0x5"/>
    </controller>
    <controller type="pci" index="15" model="pcie-root-port">
      <model name="pcie-root-port"/>
      <target chassis="15" port="0x1e"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x03" function="0x6"/>
    </controller>
    <controller type="pci" index="16" model="pcie-to-pci-bridge">
      <model name="pcie-pci-bridge"/>
      <address type="pci" domain="0x0000" bus="0x07" slot="0x00" function="0x0"/>
    </controller>
    <controller type="sata" index="0">
      <address type="pci" domain="0x0000" bus="0x00" slot="0x1f" function="0x2"/>
    </controller>
    <controller type="virtio-serial" index="0">
      <address type="pci" domain="0x0000" bus="0x03" slot="0x00" function="0x0"/>
    </controller>
    <controller type="scsi" index="0" model="virtio-scsi">
      <address type="pci" domain="0x0000" bus="0x0a" slot="0x00" function="0x0"/>
    </controller>
    <interface type="bridge">
      <mac address="52:54:00:43:e5:53"/>
      <source bridge="br0"/>
      <model type="virtio"/>
      <address type="pci" domain="0x0000" bus="0x01" slot="0x00" function="0x0"/>
    </interface>
    <serial type="pty">
      <target type="isa-serial" port="0">
        <model name="isa-serial"/>
      </target>
    </serial>
    <console type="pty">
      <target type="serial" port="0"/>
    </console>
    <channel type="spicevmc">
      <target type="virtio" name="com.redhat.spice.0"/>
      <address type="virtio-serial" controller="0" bus="0" port="1"/>
    </channel>
    <input type="tablet" bus="usb">
      <address type="usb" bus="0" port="1"/>
    </input>
    <input type="mouse" bus="ps2"/>
    <input type="keyboard" bus="ps2"/>
    <tpm model="tpm-crb">
      <backend type="emulator" version="2.0"/>
    </tpm>
    <graphics type="spice" port="-1" autoport="no">
      <listen type="address"/>
      <image compression="off"/>
      <gl enable="no"/>
    </graphics>
    <graphics type="vnc" port="-1" autoport="yes">
      <listen type="address"/>
    </graphics>
    <sound model="ich9">
      <address type="pci" domain="0x0000" bus="0x00" slot="0x1b" function="0x0"/>
    </sound>
    <audio id="1" type="spice"/>
    <video>
      <model type="qxl" ram="65536" vram="65536" vgamem="16384" heads="1" primary="yes"/>
      <address type="pci" domain="0x0000" bus="0x00" slot="0x01" function="0x0"/>
    </video>
    <redirdev bus="usb" type="spicevmc">
      <address type="usb" bus="0" port="2"/>
    </redirdev>
    <redirdev bus="usb" type="spicevmc">
      <address type="usb" bus="0" port="3"/>
    </redirdev>
    <watchdog model="itco" action="reset"/>
    <memballoon model="virtio">
      <address type="pci" domain="0x0000" bus="0x04" slot="0x00" function="0x0"/>
    </memballoon>
    <rng model="virtio">
      <backend model="random">/dev/urandom</backend>
      <address type="pci" domain="0x0000" bus="0x05" slot="0x00" function="0x0"/>
    </rng>
  </devices>
</domain>


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