Test on qemu-kvm-4.2.0-24.module+el8.2.1+6959+9b840e7c, still hit this issue, so clone this bug to track it on RHEL8.2.1.
Since the Incremental Backup feature will essentially be tech preview for RHV 4.4/RHEL AV 8.2.1 and because the issue is essentially a corner case that RHV won't hit using libvirt, the decision is to not fix for RHEL AV 8.2.1. The problem is resolved for RHEL AV 8.3.0 and that's sufficient.