Although 'vmx-*' features (e.g. vmx-xsaves) are enabled on the host, they do not seem to be supported by Libvirt domain capabilities.

In Kubevirt, we use the domain capabilities XML in order to label the nodes with the supported CPU features. Since these features are not exposed in the domain capabilities XML, VMs that require these features cannot be scheduled.

See https://gitlab.com/libvirt/libvirt/-/issues/617 for more info.