As Ryan indicated in his previous comment, the reason that the instances
are unable to launch is due to the libvirt error:

libvirtError: internal error: process exited while connecting to
monitor: 2016-11-23T08:18:06.762943Z qemu-system-s390x: -drive
-41de-b56d-991a2ece094c,cache=none,aio=native: The device is not
writable: Bad file descriptor

This indicates that the block device mapped by the file path /dev/disk
/by-path ... has a bad file descriptor. Bad file descriptor suggests to
me either that the device came and went away, the device is (for some
reason) visible as read-only, or that the device hasn't yet been fully
attached. This error messages is provided by the qemu code and only
logged when checking to ensure the block-device's file descriptor is

I think it'd be useful to get a bit more data from the compute and
cinder nodes. Can you collect a bunch of data regarding the system using
a tool called sosreport (in the xenial archives)? It will collect
various logs, metrics, and system configuration which is useful to
perform diagnostics. Just make sure to run the sosreport tool with the
-a command to ensure that all of the information is captured (more
efficient to get it the first go 'round).

Before collecting the sosreport, it probably makes sense to increase the
debug logging for the nova and qemu services prior to collecting the
data. Setting logging levels for both to debug would provide lots of
useful information.

Also note: the 2.2 GB partition isn't an issue AIUI. The volume is created by:
 1. downloading the image from glance
 2. expanding and writing the block-level content to the cinder volume (where 
content is expanded from 320 MB to 2.2 GB). 
 3. When cloud-init runs on startup of the VM, the code detects the underlying 
disk is bigger than what is currently seen and will attempt to expand the 
partition and filesystem to consume the full content of the disk.

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