libvirt qemu unexpectedly closed the monitor Failed to create chardev

On CentOS 7 server, after installing KVM, i connected to server using Virt Manager. During VM creation, i get following error

libvirt.libvirtError: internal error: qemu unexpectedly closed the monitor: 2021-02-01T18:09:38.214356Z qemu-kvm: -chardev pty,id=charserial0: Failed to create chardev

To fix this, edit file

vi /etc/fstab

Find

devpts          /dev/pts        devpts  defaults	    	0       0

Replace with

devpts          /dev/pts        devpts  gid=5,mode=620	0       0

Reboot the server. After reboot, VM creation will work properly.

See KVM

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