Solved ERROR: $vm_dir has not been configured or is not a valid directory

I'm sure I've overlooked something simple but haven't spotted it yet.
If you are unfamiliar with a utility, you should consult the manual to ease the experience.

vm(8)
Rich (BB code):
BASIC SETUP
     Once vm is installed, create the directory which will store your virtual
     machine configuration and data.  This directory will be referred to as
     $vm_dir throughput this man page.
     ...
     
ZFS
     If you are using a ZFS dataset to store your virtual machines, and want a
     new child dataset created for each one, specify the dataset to use in
     /etc/rc.conf as follows:

           vm_dir="zfs:pool/dataset"

     In contrast to earlier versions, if $vm_dir is a normal path, a standard
     subdirectory will be created for each virtual machine, regardless of the
     file system type.  However, vm is now able to handle situations where the
     dataset mountpoint does not match the dataset name.

If you are planning to use the program on a regular basis, I recommend to have a look at the projects wiki. The "How-To / Examples" on the right side of the page have detailed documentation on command usages, configuration etc. Bookmarking the page helps to find it fast when in need:

Welcome to the vm-bhyve wiki
 
My apologies.

I did read it, but misinterpreted what was written.

I misunderstood zfs: pool too mean zroot/vm. When a string is shown, you don't always which part is literal and which needs to be substituted.

I'll know better next time.
 
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