Finally LXD windows 10 qcow2 image booted up after changing the HDD type to -device virtio-scsi-pci instead of -device virtio-blk-pci in windows 10 qcow2 image itself. added new storage type SCSI in KVM/QEMU & added controller of type virtio-scsi as below to update the windows 10 qcow2 image…
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Thanks to canonical team for your great support.