Hi,
first of all thanks for your report!

Trying to recreate your issue I've downloaded the same 
ubuntu-20.04.1-live-server-amd64.iso to a focal and a hirsute host system.
Then I've defined the qcow2 and XML you posted on those.

$ wget 
https://mirrors.ocf.berkeley.edu/ubuntu-releases/20.04/ubuntu-20.04.1-live-server-amd64.iso
$ qemu-img create -f qcow2 /var/lib/libvirt/images/disk0.qcow2 10G
$ virsh define ubuntu-server.xml

Just as you reported and one would expect there s no difference between
the two other than the UUID and the default machine type.

Both VMs start fine from a libvirt/qemu POV.


Since recently libvirt 6-9 and qemu 5.2 migrated my "new" case also has
-machine 
pc-i440fx-hirsute,accel=kvm,usb=off,dump-guest-core=off,memory-backend=pc.ram \
-object memory-backend-ram,id=pc.ram,size=2147483648 \

But still very similar to your report so far.

The important VNC and display config in both cases is:
-vnc 0.0.0.0:1 \
-device cirrus-vga,id=video0,bus=pci.0,addr=0x2 \

Note: Cirrus is embarrassingly old, but is and will stay the default for
compatibility. Never the less I'd recommend using QXL - at least for any
Linux guests these days.

Connecting VNC to those two guests confirms your report.
The one running under Focal fails with "Could not allocate memory. boot" the 
one under Hirsute works fine.

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https://bugs.launchpad.net/bugs/1908512

Title:
  VNC unusable when booting ubuntu-20.04.1-live-server-amd64.iso

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