Cannot dispatch VM to any Host: Image Datastore does not support transfer mode: ceph

Brand new 5.8.1 cluster with 1 host, host has 0/0% usage, it’s empty. I just deleted 1 VM from it.
Now I am trying to start a new one.

SCHED_MESSAGE = “Sun Aug 11 13:07:30 2019 : Cannot dispatch VM to any Host. Possible reasons: Not enough capacity in Host or System DS, dispatch limit reached, or limit of free leases reached.”

network leases 1/190
host 0/1600 0/125.6GB ON

Not sure what the issue is given it just had one running and my test VM are like 1core/1GB.


Now I found this:
Sun Aug 11 13:10:30 2019 [Z0][VM][E]: Error deploying virtual machine 3 to HID: 0. Reason: [one.vm.deploy] Image Datastore does not support transfer mode: ceph
Sun Aug 11 13:10:30 2019 [Z0][SCHED][D]: Dispatching VMs to hosts:
VMID Priority Host System DS
--------------------------------------------------------------

But the VM image is on local storage, I am not using the ceph datastore at all. The template is using 0 default datastore. Only added ceph for later testing

I checked again, its still broken.
Wed Aug 14 11:04:40 2019 [Z0][VM][E]: Error deploying virtual machine 11 to HID: 4. Reason: [one.vm.deploy] Image Datastore does not support transfer mode: ceph
Wed Aug 14 11:04:40 2019 [Z0][VM][E]: Error deploying virtual machine 11 to HID: 3. Reason: [one.vm.deploy] Image Datastore does not support transfer mode: ceph
Wed Aug 14 11:04:40 2019 [Z0][VM][E]: Error deploying virtual machine 11 to HID: 2. Reason: [one.vm.deploy] Image Datastore does not support transfer mode: ceph
Wed Aug 14 11:04:40 2019 [Z0][VM][E]: Error deploying virtual machine 11 to HID: 1. Reason: [one.vm.deploy] Image Datastore does not support transfer mode: ceph
Wed Aug 14 11:04:40 2019 [Z0][VM][E]: Error deploying virtual machine 11 to HID: 11. Reason: [one.vm.deploy] Image Datastore does not support transfer mode: ceph
Wed Aug 14 11:04:40 2019 [Z0][VM][E]: Error deploying virtual machine 11 to HID: 0. Reason: [one.vm.deploy] Image Datastore does not support transfer mode: ceph
Wed Aug 14 11:04:40 2019 [Z0][SCHED][D]: Dispatching VMs to hosts:

I am not even using ceph, those deploys are local datastore VMs