$ uname -a
Linux bartledan 5.11.0-34-generic #36-Ubuntu SMP Thu Aug 26 19:22:09 UTC 2021 
x86_64 x86_64 x86_64 GNU/Linux

$ virsh start test-f1
Domain 'test-f1' started

$ virsh list
 Id   Name      State
-------------------------
 1    test-f1   running

$ sudo dmesg|grep kvm
[  146.346387] kvm [2172]: vcpu0, guest rIP: 0xffffffff8fa73344 disabled 
perfctr wrmsr: 0xc2 data 0xffff
[  148.951483] kvm [2172]: vcpu0, guest rIP: 0xffffffff94873344 disabled 
perfctr wrmsr: 0xc2 data 0xffff

** Tags removed: verification-needed-hirsute
** Tags added: verification-done-hirsute

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Packages, which is subscribed to linux in Ubuntu.
https://bugs.launchpad.net/bugs/1940107

Title:
  libvirtd fails to create VM

Status in linux package in Ubuntu:
  Invalid
Status in linux source package in Hirsute:
  Fix Committed

Bug description:
  [Impact]
  libvirtd won't be able to create VMs.

  [Test case]
  Start a VM using virsh/libvirtd:

  virsh start focal

  [Potential regression]
  Some other processes won't be able to start inside some cgroups.

  
  ---------------------------

  $ virsh start focal
  error: Failed to start domain focal
  error: internal error: process exited while connecting to monitor: 
ioctl(KVM_CREATE_VM) failed: 22 Invalid argument
  2021-08-16T15:11:23.005201Z qemu-system-x86_64: failed to initialize KVM: 
Invalid argument

  $ sudo dmesg | grep kvm
  [  135.237378] kvm: Nested Virtualization enabled
  [  135.237384] SVM: kvm: Nested Paging enabled
  [  166.209556] kvm [4082]: kvm_vm_worker_thread: cgroup_attach_task_all 
failed with err -22

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