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The error seems reasonably clear. You are trying to spawn an instance on a specific host. For hopefully obvious reasons (e.g., to prevent someone from hosing a compute host by scheduling all of their resources there), this is a privileged operation by default.

That is, you need admin credentials in order to use explicit host placement.

If you really want to change this behavior in your environment, you can edit /etc/nova/policy.json, and change:

"compute:create:forced_host": "is_admin:True",

To:

"compute:create:forced_host": "",