diff --git a/src/tools/agent-ctl/src/vm/share_fs_utils.rs b/src/tools/agent-ctl/src/vm/share_fs_utils.rs
index afac26cc50..0fcb627b33 100644
--- a/src/tools/agent-ctl/src/vm/share_fs_utils.rs
+++ b/src/tools/agent-ctl/src/vm/share_fs_utils.rs
@@ -65,13 +65,23 @@ pub(crate) async fn setup_virtio_fs(
     std::fs::create_dir_all(&host_path).context("virtio-fs:: failed to create root path")?;
 
     // plugin the device
+    // Use queue size and num from hypervisor config, with fallback to sensible defaults
+    // if not configured (e.g., 1024 queue size, 1 queue as per previous CH defaults)
+    let queue_size: u64 = if shared_fs_info.virtio_fs_queue_size > 0 {
+        shared_fs_info.virtio_fs_queue_size as u64
+    } else {
+        1024 // Default queue size matching previous CH behavior
+    };
+
+    let queue_num: u64 = 1; // Default to 1 queue (previous CH default)
+
     let share_fs_config = ShareFsConfig {
         host_shared_path: host_path.clone(),
         sock_path: generate_sock_path(&host_path),
         mount_tag: String::from(MOUNT_GUEST_TAG),
         fs_type: VIRTIO_FS.to_string(),
-        queue_size: 0,
-        queue_num: 0,
+        queue_size,
+        queue_num,
         options: vec![],
         mount_config: None,
     };
diff --git a/tests/functional/kata-agent-apis/setup_common.sh b/tests/functional/kata-agent-apis/setup_common.sh
index cba033f47c..fe3ac0bc63 100755
--- a/tests/functional/kata-agent-apis/setup_common.sh
+++ b/tests/functional/kata-agent-apis/setup_common.sh
@@ -83,8 +83,10 @@ run_agent_ctl()
 
 	local server_address="--server-address ${local_agent_server_addr}"
 
+	info "Running agent-ctl with commands: ${cmds}"
+
 	# shellcheck disable=SC2086
-	eval \
+	if ! eval \
 		sudo \
 		RUST_BACKTRACE=full \
 		"${agent_ctl_path}" \
@@ -93,6 +95,13 @@ run_agent_ctl()
 		${server_address} \
 		${cmds} \
 		${redirect}
+	then
+		warn "agent-ctl command failed. Last 50 lines of agent-ctl log:"
+		tail -n 50 "${ctl_log_file}" >&2 || true
+		warn "Last 50 lines of agent log:"
+		tail -n 50 "${agent_log_file}" >&2 || true
+		return 1
+	fi
 }
 
 get_agent_pid()