Hi,
if no cpu model is set the default is qemu64 which is rather conservative for
- maximum migratability
- guaranteeing the same feature set will be available wherever you start your 
KVM

But I thought svm/vmx would be part of that set.

A short test at least on Xenial proved my assumption that for me that is
flags           : fpu de pse tsc msr pae mce cx8 apic sep mtrr pge mca cmov 
pse36 clflush mmx fxsr sse sse2 syscall nx lm rep_good nopl pni vmx cx16 x2apic 
popcnt hypervisor lahf_lm abm tpr_shadow vnmi flexpriority ept vpid
Which contains vmx and kvm-ok is happy.

Could you provide a "cat /proc/cpuinfo" of host and guest as well as the
full commandline that libvirt generated for you?

** Changed in: libvirt (Ubuntu)
       Status: New => Incomplete

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https://bugs.launchpad.net/bugs/1561019

Title:
  copied cpu flags don't match host cpu

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