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There are certain scenarios where the 169.254.0.0/16 subnet is used for different purposes then CloudStack on a hypervisor. Once of such scenarios is a BGP+EVPN+VXLAN setup using BGP Unnumbered where the 169.254.0.1 address is used by Frr/Zebra BGP routing to send traffic to the neighboring router. The following settings can be changed in the agent.properties (default values added): control.cidr=169.254.0.0/16 Make sure the global setting 'control.cidr' matches the values defined in the agent.propeties! In the future the mgmt server can send this parameter to a KVM Agent on startup, but at the moment this framework is not in place and thus these values can't be send to the Agent in a proper manner. Signed-off-by: Wido den Hollander <wido@widodh.nl>