This is because the time it takes to create the volume is longer than
the default timeout value.  You can increase the timeout value in
/etc/nova/nova.conf to something greater, e.g. 3600.

block_device_allocate_retries = 3600

** Changed in: nova
       Status: Confirmed => Invalid

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https://bugs.launchpad.net/bugs/1316556

Title:
  vmware: boot from image (create volume) is failing

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