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OK, so I'm answering my own question. :-)

After digging through /var/log/messages and /var/log/audit/audit.log, and doing a bit more googling, I figured out that I had left SELinux in "enforcing" mode. It needs to be in "permissive" mode to allow the mounted drive to be used by virtlogd. [Maybe there is a way to fix this without going to permissive mode, but that was the easiest fix in my situation].

I'm including the instructions I used to set this up, including this fix, in case anyone is interested.

Thanks!

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# OPTIONAL: Utilize extra drives on compute node for ephemeral storage
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# You will need to have SELinux in permissive mode to access the new disk:

# Edit /etc/selinux/config and set SELINUX=permissive
SELINUX=permissive

# Then set for autorelabel of filesystems and reboot:
touch /.autorelabel
reboot

# Now you can set up the new disk:

# Find availables drives
lsblk

# Create an LVM volume containing all drives to be used for ephemeral storage
# (If pvcreate fails, make sure the drives are not being used, and then use fdisk to
# delete the partitions)
pvcreate -v /dev/{sda,sdb}
vgcreate -v ephemeralvg /dev/{sda,sdb}
lvcreate -l 100%FREE -n ephemeral ephemeralvg
mkfs.xfs -L ephemeral /dev/ephemeralvg/ephemeral

# Stop the compute services
systemctl stop libvirtd.service openstack-nova-compute.service

# If there are existing instances, move them to the new disk
mkdir /mnt/_eph
mount /dev/ephemeralvg/ephemeral /mnt/_eph
chown -R nova:nova /mnt/_eph
rsync -a /var/lib/nova/instances/ /mnt/_eph/
umount /dev/ephemeralvg/ephemeral
rmdir /mnt/_eph

# If you're feeling bold, reclaim the previous ephemeral storage
rm -rf /var/lib/nova/instances/*

# Add to /etc/fstab
/dev/ephemeralvg/ephemeral /var/lib/nova/instances xfs defaults 0 0

# Mount volume and and verify
mount -a
ls /var/lib/nova/instances
df -k /var/lib/nova/instances

# Restart the compute services
systemctl restart libvirtd.service openstack-nova-compute.service