diff --git a/releasenotes/notes/handle-304-in-image-download-8ceafad810dae83e.yaml b/releasenotes/notes/handle-304-in-image-download-8ceafad810dae83e.yaml
new file mode 100644
index 000000000..adf5cd0c4
--- /dev/null
+++ b/releasenotes/notes/handle-304-in-image-download-8ceafad810dae83e.yaml
@@ -0,0 +1,6 @@
+---
+fixes:
+  - |
+    Fixes an error when downloading already downloaded VM images caused by HTTP
+    304 Not Modified.
+    `LP#2170208 <https://bugs.launchpad.net/kayobe/+bug/2170208>`__
diff --git a/requirements.yml b/requirements.yml
index ecc754c62..78cf73ff8 100644
--- a/requirements.yml
+++ b/requirements.yml
@@ -55,7 +55,7 @@ roles:
   - src: stackhpc.libvirt-host
     version: v1.14.0
   - src: stackhpc.libvirt-vm
-    version: v1.16.3
+    version: v1.17.2
   - src: stackhpc.luks
     version: 0.4.4
   - src: stackhpc.os-ironic-state