I've discovered the following -

mysql> select * from hypervisor_capabilities where id=12\G;
*************************** 1. row ***************************
                      id: 12
                    uuid: 12
         hypervisor_type: KVM
      hypervisor_version: default
        max_guests_limit: 65
  security_group_enabled: 1
  max_data_volumes_limit: 6
   max_hosts_per_cluster: NULL
storage_motion_supported: 0
     vm_snapshot_enabled: 0
1 row in set (0.00 sec)
 

For some reason, it is not set to 1.

I have manually changed is and getting new error -

KVM VM does not allow to take a disk-only snapshot when VM is in running state

If I select the Snapshot memory:

I then able to take the snapshot.

-Yossi.

Hmm. but its stuck on 'creating'

--Yossi.

I'll try 4.2.1

-Yossi.

This is so much fun, discussing with myself here