Thanks Rich for you quick reply. I enabled logs and the program stuck again, here is the call stack and log:
2016-Aug-29 15:02:07 main:1385 Entering main()
2016-Aug-29 15:02:07 main:1393 guestfs_create succeeded
2016-Aug-29 15:02:07 main:1398 guestfs_set_network ok
2016-Aug-29 15:02:07 main:1406 Trying to add drive /dev/xvdc
libguestfs: trace: add_drive "/dev/xvdc" "format:raw"
libguestfs: trace: add_drive = 0
2016-Aug-29 15:02:07 main:1413 guestfs_add_drive_opts succeeded for drive: /dev/xvdc
libguestfs: trace: launch
libguestfs: trace: get_tmpdir
libguestfs: trace: get_tmpdir = "/tmp"
libguestfs: trace: version
libguestfs: trace: version = <struct guestfs_version *>
libguestfs: trace: get_backend
libguestfs: trace: get_backend = "libvirt"
libguestfs: launch: program=linuxxenfix
libguestfs: launch: version=1.28.1rhel=7,release=1.55.el7.centos.2,libvirt
libguestfs: launch: backend registered: unix
libguestfs: launch: backend registered: uml
libguestfs: launch: backend registered: libvirt
libguestfs: launch: backend registered: direct
libguestfs: launch: backend=libvirt
libguestfs: launch: tmpdir=/tmp/libguestfsWmxUbv
libguestfs: launch: umask=0022
libguestfs: launch: euid=0
libguestfs: libvirt version = 1002017 (1.2.17)
libguestfs: guest random name = guestfs-0h3k91d5369tcde3
libguestfs: [00009ms] connect to libvirt
libguestfs: opening libvirt handle: URI = qemu:///system, auth = default+wrapper, flags = 0
libguestfs: successfully opened libvirt handle: conn = 0xd84c40
libguestfs: qemu version (reported by libvirt) = 1005003 (1.5.3)
libguestfs: [00010ms] get libvirt capabilities
libguestfs: [00012ms] parsing capabilities XML
libguestfs: trace: get_backend_setting "force_tcg"
libguestfs: trace: get_backend_setting = NULL (error)
libguestfs: trace: get_backend_setting "internal_libvirt_label"
libguestfs: trace: get_backend_setting = NULL (error)
libguestfs: trace: get_backend_setting "internal_libvirt_imagelabel"
libguestfs: trace: get_backend_setting = NULL (error)
libguestfs: trace: get_backend_setting "internal_libvirt_norelabel_disks"
libguestfs: trace: get_backend_setting = NULL (error)
libguestfs: [00012ms] build appliance
libguestfs: trace: get_cachedir
libguestfs: trace: get_cachedir = "/var/tmp"
libguestfs: [00030ms] begin building supermin appliance
libguestfs: [00030ms] run supermin
libguestfs: command: run: /usr/bin/supermin5
libguestfs: command: run: \ --build
libguestfs: command: run: \ --verbose
libguestfs: command: run: \ --if-newer
libguestfs: command: run: \ --lock /var/tmp/.guestfs-0/lock
libguestfs: command: run: \ --copy-kernel
libguestfs: command: run: \ -f ext2
libguestfs: command: run: \ --host-cpu x86_64
libguestfs: command: run: \ /usr/lib64/guestfs/supermin.d
libguestfs: command: run: \ -o /var/tmp/.guestfs-0/appliance.d
supermin: version: 5.1.10
supermin: rpm: detected RPM version 4.11
supermin: package handler: fedora/rpm
supermin: acquiring lock on /var/tmp/.guestfs-0/lock
supermin: build: /usr/lib64/guestfs/supermin.d
supermin: build: visiting /usr/lib64/guestfs/supermin.d/base.tar.gz type gzip base image (tar)
supermin: build: visiting /usr/lib64/guestfs/supermin.d/daemon.tar.gz type gzip base image (tar)
supermin: build: visiting /usr/lib64/guestfs/supermin.d/excludefiles type uncompressed excludefiles
supermin: build: visiting /usr/lib64/guestfs/supermin.d/hostfiles type uncompressed hostfiles
supermin: build: visiting /usr/lib64/guestfs/supermin.d/init.tar.gz type gzip base image (tar)
supermin: build: visiting /usr/lib64/guestfs/supermin.d/packages type uncompressed packages
supermin: build: visiting /usr/lib64/guestfs/supermin.d/udev-rules.tar.gz type gzip base image (tar)
supermin: build: 184 packages, including dependencies
supermin: build: 30935 files
supermin: build: 12031 files, after removing unreadable files
supermin: build: 9035 files, after matching excludefiles
supermin: build: 9039 files, after adding hostfiles
supermin: build: 9068 files, after munging
supermin: kernel: picked kernel vmlinuz-3.10.0-327.13.1.el7.x86_64
supermin: kernel: picked modules path /lib/modules/3.10.0-327.13.1.el7.x86_64
supermin: kernel: kernel_version 3.10.0-327.13.1.el7.x86_64
supermin: kernel: modules /lib/modules/3.10.0-327.13.1.el7.x86_64
supermin: ext2: creating empty ext2 filesystem '/var/tmp/.guestfs-0/appliance.d.omlxj0zh/root'
supermin: ext2: populating from base image
supermin: ext2: copying files from host filesystem
supermin: ext2: copying kernel modules
supermin: ext2: creating minimal initrd '/var/tmp/.guestfs-0/appliance.d.omlxj0zh/initrd'
supermin: ext2: wrote 34 modules to minimal initrd
supermin: renaming /var/tmp/.guestfs-0/appliance.d.omlxj0zh to /var/tmp/.guestfs-0/appliance.d
libguestfs: [62773ms] finished building supermin appliance
libguestfs: trace: disk_create "/tmp/libguestfsWmxUbv/overlay1" "qcow2" -1 "backingfile:/var/tmp/.guestfs-0/appliance.d/root" "backingformat:raw"
libguestfs: command: run: qemu-img
libguestfs: command: run: \ create
libguestfs: command: run: \ -f qcow2
libguestfs: command: run: \ -o backing_file=/var/tmp/.guestfs-0/appliance.d/root,backing_fmt=raw
libguestfs: command: run: \ /tmp/libguestfsWmxUbv/overlay1
Formatting '/tmp/libguestfsWmxUbv/overlay1', fmt=qcow2 size=4294967296 backing_file='/var/tmp/.guestfs-0/appliance.d/root' backing_fmt='raw' encryption=off cluster_size=65536 lazy_refcounts=off
libguestfs: trace: disk_create = 0
libguestfs: set_socket_create_context: context_new failed: kernel: Invalid argument [you can ignore this UNLESS using SELinux + sVirt]
libguestfs: [62889ms] create libvirt XML
libguestfs: command: run: dmesg | grep -Eoh 'lpj=[[:digit:]]+'
libguestfs: read_lpj_from_dmesg: calculated lpj=2394042
libguestfs: trace: get_cachedir
libguestfs: trace: get_cachedir = "/var/tmp"
libguestfs: libvirt XML:\n<?xml version="1.0"?>\n<domain type="qemu" xmlns:qemu="
http://libvirt.org/schemas/domain/qemu/1.0">\n <name>guestfs-0h3k91d5369tcde3</name>\n <memory unit="MiB">500</memory>\n <currentMemory unit="MiB">500</currentMemory>\n <vcpu>1</vcpu>\n <clock offset="utc">\n <timer name="rtc" tickpolicy="catchup"/>\n <timer name="pit" tickpolicy="delay"/>\n <timer name="hpet" present="no"/>\n </clock>\n <os>\n <type>hvm</type>\n <kernel>/var/tmp/.guestfs-0/appliance.d/kernel</kernel>\n <initrd>/var/tmp/.guestfs-0/appliance.d/initrd</initrd>\n <cmdline>panic=1 console=ttyS0 udevtimeout=6000 udev.event-timeout=6000 no_timer_check lpj=2394042 acpi=off printk.time=1 cgroup_disable=memory root=/dev/sdb selinux=0 guestfs_verbose=1 guestfs_network=1 TERM=linux</cmdline>\n <bios useserial="yes"/>\n </os>\n <on_reboot>destroy</on_reboot>\n <devices>\n <controller type="scsi" index="0" model="virtio-scsi"/>\n <disk device="disk" type="block">\n <source dev="/dev/xvdc"/>\n <target dev="sda" bus="scsi"/>\n <driver name="qemu" type="raw" cache="writeback"/>\n <address type="drive" controller="0" bus="0" target="0" unit="0"/>\n </disk>\n <disk type="file" device="disk">\n <source file="/tmp/libguestfsWmxUbv/overlay1"/>\n <target dev="sdb" bus="scsi"/>\n <driver name="qemu" type="qcow2" cache="unsafe"/>\n <address type="drive" controller="0" bus="0" target="1" unit="0"/>\n <shareable/>\n </disk>\n <serial type="unix">\n <source mode="connect" path="/tmp/libguestfsWmxUbv/console.sock"/>\n <target port="0"/>\n </serial>\n <channel type="unix">\n <source mode="connect" path="/tmp/libguestfsWmxUbv/guestfsd.sock"/>\n <target type="virtio" name="org.libguestfs.channel.0"/>\n </channel>\n </devices>\n <qemu:commandline>\n <qemu:env name="TMPDIR" value="/var/tmp"/>\n <qemu:arg value="-netdev"/>\n <qemu:arg value="user,id=usernet,net=
169.254.0.0/16"/>\n <qemu:arg value="-device"/>\n <qemu:arg value="virtio-net-pci,netdev=usernet"/>\n </qemu:commandline>\n</domain>\n
libguestfs: trace: get_cachedir
libguestfs: trace: get_cachedir = "/var/tmp"
libguestfs: command: run: ls
libguestfs: command: run: \ -a
libguestfs: command: run: \ -l
libguestfs: command: run: \ -Z /var/tmp/.guestfs-0
libguestfs: drwxr-xr-x root root ? .
libguestfs: drwxrwxrwt root root ? ..
libguestfs: drwxr-xr-x root root ? appliance.d
libguestfs: -rw-r--r-- root root ? lock
libguestfs: command: run: ls
libguestfs: command: run: \ -a
libguestfs: command: run: \ -l
libguestfs: command: run: \ -Z /tmp/libguestfsWmxUbv
libguestfs: drwxr-xr-x root root ? .
libguestfs: drwxrwxrwt root root ? ..
libguestfs: srw-rw---- root qemu ? console.sock
libguestfs: srw-rw---- root qemu ? guestfsd.sock
libguestfs: -rw-r--r-- root root ? overlay1
libguestfs: -rwxr-xr-x root root ? umask-check
libguestfs: [62900ms] launch libvirt guest