Unable to see qemu devices added to openbalena

So I believe this comes down to DNS resolution. The openbalena.local records are populated over the local network of your host. But as the QEMU instance runs a user network, it is separated from it. For the same reason you can access the host from the VM but not the other way around. You have two possibilities:

  1. Set up bridge networking - this would put the VM into the same local network as the host but needs some more advanced setup (https://www.linux-kvm.org/page/Networking).
  2. Do not use the default openbalena.local and set up the domain with correct DNS records.
    To quickly test whether fixing the DNS would help you can do (within the VM) mount -o remount,rw /, add the record to /etc/hosts and reboot. Please note that this is only a quick test and it is not a supported setup in any way (and in fact the changes will go away after update).
    Please let us know whether this helps.