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I would recommend restarting services on the compute node, also updating your nova.conf to 'debug=True' so you can see more information on what's actually occurring. After that try to launch an instance again, you may want to read through previous questions regarding a time out from nova api.

https://ask.openstack.org/en/question/33069/failed-to-create-instance-nova-api-error-timed-out/