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Looks like this problem was fixed in a later devstack release with this patch: https://review.openstack.org/#/c/324562/2

So I guess if you want to fix this for the mitaka release you can try doing the same changes, just replace these two lines here https://github.com/openstack-dev/devstack/blob/stable/mitaka/lib/nova_plugins/functions-libvirt#L134

stop_service $LIBVIRT_DAEMON
start_service $LIBVIRT_DAEMON

With this one:

restart_service $LIBVIRT_DAEMON

Then try running stack.sh again.