Variations Create Hierarchies Job Definition successfully creates the source & target labels.
After that no subsites are created on the target labels nor any target pages.
I've created a new site collection to test and still can't get this working so I'd conclude this is a problem with the farm.
I have run the variationsfixuptool, which says it's starting the timer jobs.
Moreover if I look in Job History of timer jobs every timer job in the entire web application for the past day has succeeded in 0:00:00 window.
Part 2 (cont'd)
If you manually spawn the variation site using site manager the variation sites are created (but not their subsites).