Setting machine type to `pc-q35-3.1` does not seem to change the behavior. It still freezes at `Guest has not initialized the display (yet)` when setting `pcie=1` on other VFs.
I forget to mention that my NICs are Intel X722.
Here is the full list of IOMMU groups (which is too long to fit into one reply)
# find /sys/kernel/iommu_groups/ -type l | sort
/sys/kernel/iommu_groups/0/devices/0000:00:00.0
/sys/kernel/iommu_groups/10/devices/0000:00:1f.0
/sys/kernel/iommu_groups/10/devices/0000:00:1f.2...