error: Unable to create cgroup for vm**: No such file or directory

The error can appear for any type of KVM VM installation like Virtualizor  or SolusVM or Proxmox. You may face the same error if you are simply using virtmanager to manage your KVM installation. The error appear when you try to start/create the VM from the xml file:

[root@vps8 addvs]# virsh create /etc/libvirt/qemu/v1015.xml
error: Failed to create domain from /etc/libvirt/qemu/v1015.xml
error: Unable to create cgroup for v1015: No such file or directory

It appears because for some CentOS starts unmounting the cgroup and breaks libvirt. Easy way to fix this is to restart libvirtd:

service libvirtd restart

The error is more common in CentOS 7 than CentOS 6, as systemd is known to have the bug:

https://bugzilla.redhat.com/show_bug.cgi?id=678555