diff --git a/src/runtime-rs/crates/hypervisor/src/qemu/inner.rs b/src/runtime-rs/crates/hypervisor/src/qemu/inner.rs
index 86765c3210..55e7b9d7b7 100644
--- a/src/runtime-rs/crates/hypervisor/src/qemu/inner.rs
+++ b/src/runtime-rs/crates/hypervisor/src/qemu/inner.rs
@@ -389,7 +389,9 @@ impl QemuInner {
         let mut caps = Capabilities::default();
 
         // Confidential Guest doesn't permit virtio-fs.
-        let flags = if self.hypervisor_config().security_info.confidential_guest {
+        let flags = if self.hypervisor_config().security_info.confidential_guest
+            || self.hypervisor_config().shared_fs.shared_fs.is_none()
+        {
             CapabilityBits::BlockDeviceSupport | CapabilityBits::BlockDeviceHotplugSupport
         } else {
             CapabilityBits::BlockDeviceSupport