I faced the same issue with virt-manager not recognizing libvirt-daemon-
driver-lxc even after installation. I found that a simple reboot was
required to make it work properly. It seems that the libvirt service
doesn't pick up the new driver until a system restart, even though the
package is installed. This might be something to keep in mind if you're
troubleshooting similar issues in the future. For more insights on
managing Linux systems and virtual machines, check out
https://vivetool.com/.

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https://bugs.launchpad.net/bugs/2092350

Title:
  virt-manager does not notice libvirt-daemon-driver-lxc being installed
  until reboot

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