I have a 3-OSD CEPH cluster set up, and I’ve been able to create containers on it just fine for the past few days. I tried creating my first virtual machine on it today, but whenever I do, the instance creation process hangs. Upon inspecting the operation, the create operation is stuck unpacking the image after download.
You have one placement group that’s not functional and a cluster with exactly 3 OSDs, so that will cause I/Os going towards that PG to hang as there’s nowhere for Ceph to redirect them to.