I can confirm that installing a newer version of libvirt fixes the
issue.

We just did this for an nova-libvirt container in the Openstack Victoria
release, wich we had upgraded from Rocky.

We used the latest available libvirt version for Ubuntu 20.04:
6.0.0-0ubuntu8.12

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https://bugs.launchpad.net/bugs/1906266

Title:
  After upgrade: "libvirt.libvirtError: Requested operation is not
  valid: format of backing image %s of image %s was not specified"

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