When Linux bridge NAD is used in NIC which is added to VM during creation, the VM ends up in ErrorUnschedulable state.

CNV-v4.21.0.rhel9-123

always

1. create Linux bridge NAD
2. start customized VM creation from template, navigate to "Network interfaces" tab
3. add NIC of "virtio" model with previously created NAD
4. finish VM creation

VM is in ErrorUnschedulable state

VM is running

creating similar VM with another type of NAD works properly (see L2 overlay screencast)

0/6 nodes are available: 3 Insufficient bridge.network.kubevirt.io/br0, 3 node(s) had untolerated taint(s). no new claims to deallocate, preemption: 0/6 nodes are available: 6 Preemption is not helpful for scheduling.