I have managed to work it by setting the Hailo-8 reset method to null.
#!/bin/bash
lspci -D | grep -E "Co-processor: Device 1e60:2864 \(rev 01\)|Hailo" | awk '{print $1}' | while read -r device; do
echo | sudo tee /sys/bus/pci/devices/$device/reset_method
done
Here is the proper manual Enabling Virtual Machine to access Hailo-8 devices