Hey, good to read another nested virt post !
I’ve done it successfully-ish, but the other way around : Qubes as a domU on a vanilla Xen dom0 (Debian).
So I managed Xen-on-Xen, whereas you do KVM-on-Xen, so my advice may not apply to you.
I’ve seen you’ve liked/read my posts about nested virtualization, did it help ?
I remember “hap=1” and “nestedhvm=1” are REQUIRED in the L1-dom0 (your proxmoxonqubes) config file (this is Xen syntax, adapt).
In your quoted text you did not enable nestedhvm in the xen-by name xml.
The way to go is with “xen/by-name” like you did, but check how KVM/libvirt do it, I’m not using them.
Btw, VMX/SVM are processor features related to virtualization, but not specific about nested virt. Although I guess they’re required to be ebabled in L0-dom0 AND L1-dom0.
Dunno why you used RDRAND and SMAP, what are those ? I don’t have those settings on Xen, last I checked.
Also, I only managed to run PV L2-domUs (Debian/Fedora in your case).
You can check “xl dmesg” from L0-dom0 (Qubes) to see what’s happening, but better use “loglvl=all guest_loglvl=all” in Qubes Xen command line to get more info.
IIRC, “xl dmesg” is permanently logged to “hypervisor.log” on Qubes.
If you have LOTS OF “vmexit” lines (xl dmesg cant even stop), try changing the L2-domU type.
One last thing I think about : the last Debian-based ISOs won’t work correctly on Xen, ie they wont boot and hang exactly where you spot it. But you’re on KVM so I dunno if it applies.
If you manage to read/log why the installers fail, maybe I can tell you if that applies to you. Try panic=0 or something in the GRUB kernel command lines for the installers.