After branching 3.5, some additional work to improve the Live Merge feature continued on the master branch. In order to have a working version of Live Merge in the 3.5 release, these patches must be backported.
A non-exhaustive list of patches follows:
* Live Merge: support active layer commit
* Live Merge: Ignore libvirt block job events
* Live Merge: improve log messages
* Live Merge: Stop scanning volume chains at VM startup
* Live Merge: Explicitly save block job info
* Live Merge: Add liveMerge capability to vdsCaps
*** Bug 1131548 has been marked as a duplicate of this bug. ***
oVirt 3.5 has been released and should include the fix for this issue.