So adding qemu-kvm fixed the issue with running nested KVM. I think
though the problem still exists on a non nested environment.

I'll get with the user who encountered this and see if I can get some
more logs.

Thanks

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https://bugs.launchpad.net/bugs/1387881

Title:
  qemu fails to recognize full virtualization

Status in QEMU:
  New
Status in “linux” package in Ubuntu:
  Incomplete
Status in “qemu” package in Ubuntu:
  New

Bug description:
  System:

  14.04
  qemu - 2.0.0+dfsg-2ubuntu1.6
  virtinst 0.600.4-3ubuntu2

  Command:

  virt-install --name juju-bootstrap --ram=2048 --vcpus=1  --hvm \
  --virt-type=kvm --pxe --boot network,hd --os-variant=ubuntutrusty \
  --graphics vnc --noautoconsole --os-type=linux --accelerate \
  
--disk=/var/lib/libvirt/images/juju-bootstrap.qcow2,bus=virtio,format=qcow2,cache=none,sparse=true,size=20
 \
  --network=bridge=br0,model=virtio

  Error:

  ERROR Host does not support virtualization type 'hvm'

  Diagnostics:

  $ sudo kvm -vnc :1 -monitor stdio
  [sudo] password for cscloud: 
  QEMU 2.0.0 monitor - type 'help' for more information
  (qemu) KVM internal error. Suberror: 1
  emulation failure
  EAX=00000000 EBX=40010000 ECX=00000030 EDX=00000cfd
  ESI=00000000 EDI=00000000 EBP=00000000 ESP=00006fcc
  EIP=0fedb30c EFL=00000002 [-------] CPL=0 II=0 A20=1 SMM=0 HLT=0
  ES =0010 00000000 ffffffff 00409300 DPL=0 DS   [-WA]
  CS =0008 00000000 ffffffff 00c09a00 DPL=0 CS32 [-R-]
  SS =0010 00000000 ffffffff 00409200 DPL=0 DS   [-W-]
  DS =0010 00000000 ffffffff 00409300 DPL=0 DS   [-WA]
  FS =0010 00000000 ffffffff 00c09300 DPL=0 DS   [-WA]
  GS =0010 00000000 ffffffff 00c09300 DPL=0 DS   [-WA]
  LDT=0000 00000000 0000ffff 00008200 DPL=0 LDT
  TR =0000 00000000 0000ffff 00008b00 DPL=0 TSS32-busy
  GDT=     000f6688 00000037
  IDT=     000f66c6 00000000
  CR0=60000011 CR2=00000000 CR3=00000000 CR4=00000000
  DR0=0000000000000000 DR1=0000000000000000 DR2=0000000000000000 
DR3=0000000000000000 
  DR6=00000000ffff0ff0 DR7=0000000000000400
  EFER=0000000000000000
  Code=00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 <00> 00 00 
00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00
  info kvm
  kvm support: enabled
  (qemu) 

  
  > lsmod|grep kvm
  kvm_intel             143109  0 
  kvm                   451552  1 kvm_intel

  
  $ dmesg|grep -i kvm
  [    5.722167] kvm: Nested Virtualization enabled
  [    5.722190] kvm: Nested Paging enabled

  ---

  I haven't been able to get much out of libvirt as the kvm instance
  never starts.

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