I think you have AppArmor enabled. Try add above line to "/etc/apparmor.d/usr.sbin.libvirtd and reload appArmor or reboot
virtiofs_apparmor_file: "/etc/apparmor.d/usr.sbin.libvirtd"
virtiofs_apparmor_line1: "# Habana K8S"
virtiofs_apparmor_line2: "/usr/libexec/qemu-kvm PUx,"
virtiofs_apparmor_line3: "/usr/libexec/virtiofsd PUx,"
virtiofs_apparmor_line4: "/usr/bin/kvm PUx,"
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