Bug 2257088

Creating a new Fedora 39 VM using the live Workstation ISO.  Tried both gnome-boxes and virt-manager.  In both cases once I click on the button to start the creation/OS installation process, it fails with this error:

Unable to read /home/d/.config/libvirt/qemu/lib/domain-1-fedora39/master-key.aes: Failed to open file “/home/d/.config/libvirt/qemu/lib/domain-1-fedora39/master-key.aes”: Permission denied

Reproducible: Always

Steps to Reproduce:
1. Use QEMU user session
2. Start the new VM dialogs
3. Pick the F39 Workstation ISO, accept all defaults, click "create"
Actual Results:  
Fails with the above message.  Journal:

Jan 06 10:14:05 virtqemud[28895]: libvirt version: 9.7.0, package: 1.fc39 (Fedora Project, 2023-09-04-13:12:57, )
Jan 06 10:14:05 virtqemud[28895]: hostname: ...
Jan 06 10:14:05 virtqemud[28895]: Unable to read from monitor: Connection reset by peer
Jan 06 10:14:05 virtqemud[28895]: internal error: QEMU unexpectedly closed the monitor (vm='fedora39'): 2024-01-06T18:14:05.061605Z qemu-system-x86_64: Unable to read /home/d/.config/libvirt/qemu/lib/domain-1-fedor>
Jan 06 10:14:05 virtqemud[28895]: internal error: process exited while connecting to monitor: 2024-01-06T18:14:05.061605Z qemu-system-x86_64: Unable to read /home/d/.config/libvirt/qemu/lib/domain-1-fedora39/master>

Tried with both the default BIOS and with UEFI selected, same outcome.

Expected Results:  
Should have started the F39 Workstation 

That directory seems(?) to be created during the VM creation attempt but is cleaned up afterwards?

$ ls -ldZ .config/libvirt/qemu/lib
drwxr-xr-x. 1 d d unconfined_u:object_r:svirt_home_t:s0:c464,c988 0 Jan  6 10:14 .config/libvirt/qemu/lib
$ ls -lZ .config/libvirt/qemu/lib
total 0