I re-checked all that you and I found, lets write a List with all that
we know if there are patterns.

Host (should not matter, but be rather new) - in my case B4.18 Q2.11

For new qemu I'm using Mitaka.
In this case being from 
https://launchpad.net/~ubuntu-cloud-archive/+archive/ubuntu/mitaka-staging
to get those libvirt/qemu with the MDS fixes which are still waiting to be 
released.

The check is like:
$ uname -r; cat /sys/devices/system/cpu/vulnerabilities/mds; cat /proc/cpuinfo 
| grep -e ^bug -e ^flags | grep md

An example result would look like
a) 4.4.0-148-generic
b) Mitigation: Clear CPU buffers; SMT Host state unknown
c) flags           : [...] md_clear
d) bugs            : cpu_meltdown spectre_v1 spectre_v2 spec_store_bypass l1tf 
mds

a) to verify the kernel level is as expected
b) to show what the kernel thinks about the Mitigation status
c) check the md_clear in cpu flags
d) show bugs the cpu is affected (not present on 3.13)

Only if all those above are ok we call it good, otherwise add a comment
what fails

Test list:
lvl 1 kernel  T3.13 / T4.4
lvl 2 kernel  T3.13 / T4.4 / B4.15
Qemu T2.0 / M2.5

T  LVL1            LVL2      Result
01 T3.13 / Q2.0    T3.13     ok
02 T3.13 / Q2.0    T4.4      ok
03 T3.13 / Q2.0    B4.15     full passthrough crashes, md-clear feature not 
passed
04 T3.13 / Q2.5    T3.13     ok
05 T3.13 / Q2.5    T4.4      ok
06 T3.13 / Q2.5    B4.15     ok
07 T4.4 / Q2.0     T3.13     shows not-affected, md-clear available
08 T4.4 / Q2.0     T4.4      shows not-affected, md-clear available
09 T4.4 / Q2.0     B4.15     shows not-affected, md-clear available
10 T4.4 / Q2.5     T3.13     ok
11 T4.4 / Q2.5     T4.4      ok
12 T4.4 / Q2.5     B4.15     ok

Of these testcases we have two fields of errors.
#03 : base Trusty with a rather new guest having issues
      Fix to that seems to be in the kernel as 3.13 -> 4.4 fixes it
      
#07-09: The qemu 2.0 in trusty seems to have issues if used with the HWE 4.4 
kernel
        The fix to that seems to be in a newer qemu as 2.0 -> 2.5 fixes it

** Changed in: qemu (Ubuntu)
       Status: New => Confirmed

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https://bugs.launchpad.net/bugs/1829555

Title:
  nested virtualization w/first level trusty guests has odd MDS behavior

Status in linux package in Ubuntu:
  Confirmed
Status in qemu package in Ubuntu:
  Confirmed

Bug description:
  When nested kvm virtualization is used (with host-passthrough), if the
  first level guest is a trusty vm, odd behavior is seen in the second
  level guest:

    host os:
    disco/5.0.0-15.16-generic/qemu 1:3.1+dfsg-2ubuntu3.1
    contents of /sys/devices/system/cpu/vulnerabilities/mds:
       Mitigation: Clear CPU buffers; SMT vulnerable

    1st level vm:
    trusty/4.4.0-148.174~14.04.1-generic/qemu 2.0.0+dfsg-2ubuntu1.46
    contents of /sys/devices/system/cpu/vulnerabilities/mds:
      Mitigation: Clear CPU buffers; SMT Host state unknown

    2nd level vm:
    bionic/4.15.0-50.54-generic
    contents of /sys/devices/system/cpu/vulnerabilities/mds:
      Not affected

  This behavior is not seen when the first level guest is a xenial or
  bionic vm (same bare metal hardware):

    1st level vm:
    bionic/4.15.0-50.54-generic/qemu 1:2.11+dfsg-1ubuntu7.13
    contents of /sys/devices/system/cpu/vulnerabilities/mds:
      Mitigation: Clear CPU buffers; SMT Host state unknown

    2nd level vm:
    bionic/4.15.0-50.54-generic
    contents of /sys/devices/system/cpu/vulnerabilities/mds:
      Mitigation: Clear CPU buffers; SMT Host state unknown

  and:

    1st level vm:
    xenial/4.4.0-148.174-generic/qemu 1:2.5+dfsg-5ubuntu10.39
    contents of /sys/devices/system/cpu/vulnerabilities/mds:
      Mitigation: Clear CPU buffers; SMT Host state unknown

    2nd level vm:
    bionic/4.15.0-50.54-generic
    contents of /sys/devices/system/cpu/vulnerabilities/mds:
      Mitigation: Clear CPU buffers; SMT Host state unknown

  It's not clear whether this is an issue with linux/kvm or qemu in trusty.
  --- 
  ApportVersion: 2.14.1-0ubuntu3.29
  Architecture: amd64
  AudioDevicesInUse:
   USER        PID ACCESS COMMAND
   /dev/snd/controlC0:  ubuntu     2239 F.... pulseaudio
  DistroRelease: Ubuntu 14.04
  HibernationDevice: RESUME=UUID=4fa9460d-7ed4-49db-8e22-86a5107d0062
  InstallationDate: Installed on 2019-02-14 (92 days ago)
  InstallationMedia: Ubuntu 14.04.5 LTS "Trusty Tahr" - Release amd64 (20160803)
  Lsusb:
   Bus 001 Device 002: ID 0627:0001 Adomax Technology Co., Ltd 
   Bus 001 Device 001: ID 1d6b:0002 Linux Foundation 2.0 root hub
   Bus 004 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
   Bus 003 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
   Bus 002 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
  MachineType: QEMU Standard PC (i440FX + PIIX, 1996)
  Package: qemu 2.0.0+dfsg-2ubuntu1.46
  PackageArchitecture: amd64
  ProcEnviron:
   TERM=screen
   PATH=(custom, no user)
   XDG_RUNTIME_DIR=<set>
   LANG=en_US.UTF-8
   SHELL=/bin/bash
  ProcFB: 0 qxldrmfb
  ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-4.4.0-148-generic 
root=UUID=9a35107e-83fa-4010-81e1-235a4ea14fe6 ro quiet splash vt.handoff=7
  ProcVersionSignature: User Name 4.4.0-148.174~14.04.1-generic 4.4.177
  RelatedPackageVersions:
   linux-restricted-modules-4.4.0-148-generic N/A
   linux-backports-modules-4.4.0-148-generic  N/A
   linux-firmware                             1.127.24
  RfKill:
   
  Tags:  trusty trusty
  Uname: Linux 4.4.0-148-generic x86_64
  UpgradeStatus: No upgrade log present (probably fresh install)
  UserGroups: adm cdrom dip libvirtd lpadmin plugdev sambashare sudo
  _MarkForUpload: True
  dmi.bios.date: 04/01/2014
  dmi.bios.vendor: SeaBIOS
  dmi.bios.version: 1.12.0-1
  dmi.chassis.type: 1
  dmi.chassis.vendor: QEMU
  dmi.chassis.version: pc-i440fx-bionic
  dmi.modalias: 
dmi:bvnSeaBIOS:bvr1.12.0-1:bd04/01/2014:svnQEMU:pnStandardPC(i440FX+PIIX,1996):pvrpc-i440fx-bionic:cvnQEMU:ct1:cvrpc-i440fx-bionic:
  dmi.product.name: Standard PC (i440FX + PIIX, 1996)
  dmi.product.version: pc-i440fx-bionic
  dmi.sys.vendor: QEMU

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