RHV: cannot create new Storage Domain

Issue

• Cannot create new Storage Domain in RHV
• In the Administration Portal, creating new storage domains fails with:

Physical device initialization failed. Please check that the device is empty and accessible by the host.

• Hosted Engine deploy fails with error:

[ ERROR ] ovirtsdk4.Error: Fault reason is "Operation Failed". Fault detail is "[Physical device initialization failed. Please check that the device is empty and accessible by the host.]". HTTP response code is 400.
[ ERROR ] fatal: [localhost]: FAILED! => {"changed": false, "msg": "Fault reason is \"Operation Failed\". Fault detail is \"[Physical device initialization failed. Please check that the device is empty and accessible by the host.]\". HTTP response code is 400."}