In continuation to my previous message, although the 10Gbe interfaces are showing in the Guest Domains, I am unable to ping. I had enabled Jumbo frames for the net devices as well as virtual switches in the control domain.
This is known limitation of current version ldm. you are trying to create virtual nic on top of virtual nic. try to create your vsw on net4 or net 8 should work.
Not sure if you figured this out but at least in my case, tagging the VSW with a VLAN id when the port was already tagged on the switch generated this error. When I recreated the VSW without specifying a VLAN id eliminated the error; all frames leaving the physical switch port will be tagged with its VLAN on egress anyway unless you're using multiple VLANs on the same port.