We have the following matrix of possible arguments handled by the logic
statement touched by this patch:
       | flags & _REUSE_EXT | !(flags & _REUSE_EXT)
-------+--------------------+----------------------
 format| (1)                | (2)
-------+--------------------+----------------------
!format| (3)                | (4)
-------+--------------------+----------------------

In cases 1 and 2 the user provided a format, in cases 3 and 4 not. The
user requests to use a pre-existing image in 1 and 3 and libvirt will
create a new image in 2 and 4.

The difference between cases 3 and 4 is that for 3 the format is probed
from the user-provided image, whereas in 4 we just use the existing disk
format.

The current code would treat cases 1,3 and 4 correctly but in case 2 the
format provided by the user would be ignored.

The particular piece of code was broken in commit 35c7701c
but since it was introduced a few commits before that it was never
released as working.