I think I found the culprit of this:
Daniel P. Berrange wrote on 11/21/2008 11:13 AM:
- Allocate capabilities info before initializing inotify driver
because loading XM config files /etc/xen requires this
...
- if (!(priv->caps = xenHypervisorMakeCapabilities(conn))) {
- DEBUG0("Failed to make capabilities");
- goto fail;
- }
If I undo this part of your patch, everything else works as designed.
While I have no evidence yet to support this claim, I think this is failing trying to open
the xend socket, perhaps before the xend driver is open...