This bug was initially created as a copy of Bug #2166512

I am copying this bug because:
The bug was not resolved for 4.12.1 and it was resolved only in 4.13. Meaning users can hit this bug coming through 4.12.

Description of problem:
After the environment upgrading to OCP + CNV 4.12.1, the VMs with limits/requests resources specified can't start.

memory:
hugepages:
pageSize: 1Gi
resources:
limits:
cpu: "4"
memory: 8Gi
requests:
cpu: "4"
memory: 8Gi

Logs generated from virtualmachine-controller is as follows:

Error creating pod: Pod "virt-launcher-rhel8-ngu-2-5gmm4" is invalid: spec.containers[0].resources.requests: Invalid value: "5": must be less than or equal to cpu limit

The overhead(1 CPU) was added to the virt-launcher pod(4+1=5). However, it was only added to the requests while not to the limits, as we're getting denied by the validating webhook:

Error "spec.template.spec.domain.resources.requests.cpu or spec.template.spec.domain.resources.limits.cpu must be equal when DedicatedCPUPlacement is true " for field "spec.template.spec.domain.cpu.dedicatedCpuPlacement".

Version-Release number of selected component (if applicable):

How reproducible:
100%

Steps to Reproduce:
1. Upgrade OCP + CNV env from version 4.11.* to 4.12.1.
2. Try to start a VM

Actual results:
The VM is always in 'starting' status, from the log, it's found the requests/limits CPU number mismatch after adding the overallocated cpu.

Expected results:
The overallocated CPU should be added to both requests and limits of the vmi pod
.
Additional info: