Dear Maintainer,
This happened after upgrading from Debian 9 to Debian 10, and also after commenting out line 88 of /etc/xen/scripts/vif-nat.
After I worked around another bug (which hasn't been assigned a number yet - "vif-nat fails to find backend/vif/x/x/domain") in vif-nat on Debian 10, vif-nat still said it was returning code 1 and was thus still preventing domUs from being created.
As I attempted to add "echo"s to the script to find out where it was erroring out, to my surprise I found that just adding the echos made the script work!
I narrowed it down to one strategic place to add an "echo" to let the script work normally: before the "handle_iptable" on line 182.
I don't know why this makes it work - perhaps an exit code is being carried through where it shouldn't.
Thanks,
Paul Sutor