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I was getting the same errors on a 3-node setup, created with packstack. I had configured one of the nodes as controller and running compute and network services on all 3 nodes. Every other instance creationg would log Timeout waiting for vif plugging callback for instance in nova-compute.log and the throw VirtualInterfaceCreateException: Virtual Interface creation failed exception immediately after that.

Setting vif_plugging_is_fatal: false seems to work around the problem, but then I was getting random non-VM network errors, like router ports not being properly attached to private networks after creation (status DOWN).

I turned out I was missing the nova interactions settings in /etc/neutron/neutron.conf on the 2 non-controller nodes:

notify_nova_on_port_status_changes = True
notify_nova_on_port_data_changes = True
nova_url = http://<controller-ip>:8774/v2
nova_region_name = RegionOne
nova_admin_username = nova
nova_admin_tenant_name = services
nova_admin_password = <your-password>
nova_admin_auth_url = http://<controller-ip>:5000/v2.0
send_events_interval = 2

Packstack configured this only on the first (controller) node. Adding them to the other 2 nodes sovled the issue immediately.