Problem

Until now we installed qemu-kvm, libvirt, virt-install, and additionally cockpit-machines. That combo installs about 338 packages, at least 200 packages graphical desktop related (X11, wayland, gtk3, even poppler pdf renderer). This breaks Fedora Servers fundamental headless core concept and installs lots of unusable and thus locally uncontrolled/unmaintained software.
qemu-kvm
The cause of the problem is the use of package QEMU-kvm, which is aimed - hitherto unnoticed - at installation on a graphical desktop and therefore correctly depends on the corresponding packages.
Fortunately, the qemu-kvm developers were wise enough to create a qemu-kvm-core group at the same time, which omits all graphical references. Using this package allows for an excellent installation of qwmu-kvm on Fedora Server.
libvirt
Unfortunately, the maintainers of libvirt insist that the libvirt package still relies on qemu-kvm, thus installing all the packages that QEMU-kvm-core omits again. An analogous libvirt-core does not exist. Instead, Daniel Berrange refers to the list of individually available single packages, from which anyone (i.e. server WG) should please compile and test a suitable mix and watch the libvirt development steps to see if changes to the mix are required.
Cockpit-machines
The package currently has QEMU-kvm defined as a dependency, too. Martin Pitt modified the dependency list, so this issue is resolved.

Summary

Libvirt remains a big weak point in virtualisation for headless Fedora Server Edition and may evolve into a source of issues in the future. Server WG must establish routines to closely monitor libvirt updates.

Problem solution

A solution approach is available in the already existing, but hidden and unused group virtualization-headless (see 'dnf group list -v hidden'). It includes currently qemu-kvm and therefor pulls in the same huge set of graphics packages. We could modify the group as required and use it as a means to organize a suitable libvirt mix.

Possible solution steps

1. Develop and test locally a suitable libvirt mix.

2. Modify virtualization-headless accordingly and make it public (in comps).

3. Modify server-product-environment (i.e. Fedora Server Edition) to use virtualization-headless instead of virtualization. This also saves us mb of data on the distribution medium.