One modification to the outer KVM that may help here:

adding --unsafe-cache to your first level KVM will use host ram to cache
guest writes to the qcow2 image -- this means what it means, if kill
your VMs or host machine has power failure, you'll lose data.    With
that in place the same test resulted in add-machine to status: started
of: 149 seconds.

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https://bugs.launchpad.net/bugs/1322302

Title:
  local provider is very slow to tranistion from agent-status: pending

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