@Vlad, I had reported this bug previously on
https://bugs.launchpad.net/nova/+bug/1885418.

My research with different scenarios showed that the problem is probably
related to the latest versions of libvirtd libraries and modules. I did
test the previous versions of libvirtd and they worked seamlessly. So
this may help you in resolving the issue.

Thank you

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https://bugs.launchpad.net/bugs/1896617

Title:
  Creation of image (or live snapshot) from the existing VM fails if
  libvirt-image-backend is configured to qcow2 starting from Ussuri

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