QEMU VM being paused on startup

I suspect you are running into the reset bug on the RX580.

I too suffered the symptons you described passing through my RX580 to the guest.

I got it working by applying the following:
Isolating the GPU as described in: https://wiki.archlinux.org/index.php/PCI_passthrough_via_OVMF#Isolating_the_GPU

Applying a patch to the kernel I found on the forums here:
https://forum.level1techs.com/t/attention-amd-vfio-users-do-not-update-your-bios/142685

https://clbin.com/VCiYJ

I hope this saves you from a nasty headache :stuck_out_tongue_winking_eye: