So on a current tumbleweed with libvirt-libs 8.7.0-1.1 libvirt-daemon-qemu 8.7.0-1.1 libvirt-client 8.7.0-1.1 libvirt-daemon 8.7.0-1.1 dnsmasq 2.86-5.2 selinux-policy 20220714-4.1 the default network starts without issues. Most AVCs I see are from NetworkManager_dispatcher_custom_t, which isn't great but that domain is currently permissive. I'll have a look at the other AVCs, but this specific but I can't reproduce. Can you please retry on a current tumbleweed after checking with restorecon that all labels in /run and /etc are properly set?