KVM VM failes to start with error 'unsupported configuration: storage type 'dir' requires use of storage format 'fat'.'

Solution Verified - Updated -

Issue

  • KVM VM failes to start with error
error: Failed to start domain xyz
error: unsupported configuration: storage type 'dir' requires use of storage format 'fat'.

Environment

  • Red Hat Enterprise Linux Server release 7.9 (Maipo)
  • libvirt-4.5.0-36.el7.x86_64
  • qemu-kvm-1.5.3-175.el7.x86_64
  • qemu-kvm-common-1.5.3-175.el7.x86_64

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