It turns out this had nothing to do with the VM or Hypervisor, but was guest specific. Here is the scoop for anyone that may come across this Ansible AWX install error.

Ansible AWX now prefers Kubernetes over Docker to run on and in this case I used K3s on Rocky Linux. After K3s is installed if you run "kubectl get apiservice" you will see:
"kube-system/metrics-server false (missingendpoints)"

This is what causes the Ansible AWX install to fail with "Unable to determine if virtual resource"

The solution:
Installing K3s on Rocky Linux requires the extra step of disabling SELinux and firewalld

sudo setenforce 0
sudo sed -i 's/^SELINUX=.*/SELINUX=permissive/' /etc/selinux/config
sudo systemctl disable firewalld --now

It turns out this had nothing to do with the VM or Hypervisor, but was guest specific. Here is the scoop for anyone that may come across this Ansible AWX install error.

Ansible AWX now prefers Kubernetes over Docker to run on and in this case I used K3s on Rocky Linux. After K3s is installed if you run "kubectl get apiservice" you will see:
"kube-system/metrics-server false (missingendpoints)"

This is what causes the Ansible AWX install to fail with "Unable to determine if virtual resource"

The solution:
Installing K3s on Rocky Linux requires the extra step of disabling SELinux and firewalld

sudo setenforce 0
sudo sed -i 's/^SELINUX=.*/SELINUX=permissive/' /etc/selinux/config
sudo systemctl disable firewalld --now

Thanks for the insight. I will follow up and post back.

The issue seems to be the way it detects or not virtualization, have you contacted AWX developers? Xen is very very different than KVM and doesn't use the same mechanism at all, so there's no similar workaround until the problem is very clear on what should be fixed or not on AWX side