As it turns out, this is actually a user error. When creating the level2.img and level3.img, you must specify the backing store type, because libvirt won't automatically detect those for safety reasons. So you should do:
qemu-img create -f qcow2 -o backing_fmt=qcow2 -b level1.img level2.img qemu-img create -f qcow2 -o backing_fmt=qcow2 -b level2.img level3.img After doing that, boot succeeds on my laptop. ** Changed in: libvirt (Ubuntu) Status: Confirmed => Invalid -- You received this bug notification because you are a member of Ubuntu Server Team, which is subscribed to libvirt in Ubuntu. https://bugs.launchpad.net/bugs/696318 Title: Starting VMs on qcow2 format with base images in level three fails To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/libvirt/+bug/696318/+subscriptions -- Ubuntu-server-bugs mailing list Ubuntu-server-bugs@lists.ubuntu.com Modify settings or unsubscribe at: https://lists.ubuntu.com/mailman/listinfo/ubuntu-server-bugs