I've just noticed, 6.11.7 already has this option enabled, yet it boot fine. So whatever change was introduced, when trying to boot the VM with xl top, these were the error messages produced:
Waiting for domain ts (domid 2) to die [pid 2645] Domain 2 has shut down, reason code 1 0x1 Action for shutdown reason code 1 is restart Domain 2 needs to be cleaned up: destroying the domain Done. Rebooting now xc: error: panic: xg_dom_bzimageloader.c:761: xc_dom_probe_bzimage_kernel unable to XZ decompress kernel: Invalid kernel xc: error: panic: xg_dom_core.c:689: xc_dom_find_loader: no loader found: Invalid kernel libxl: error: libxl_dom.c:571:libxl__build_dom: xc_dom_parse_image failed libxl: error: libxl_create.c:1640:domcreate_rebuild_done: Domain 5:cannot (re-)build domain: -3 libxl: error: libxl_domain.c:1183:libxl__destroy_domid: Domain 5:Non-existant domain libxl: error: libxl_domain.c:1137:domain_destroy_callback: Domain 5:Unable to destroy guest libxl: error: libxl_domain.c:1064:domain_destroy_cb: Domain 5:Destruction of domain failed The only way I could find to solve this was chroot into the image of the VM, uninstall the 6.12 Kernel and run update-grub. Hope this helps finding the issue.
