Facing the same issue with KVM enabled L2 VM on following setup CPU Model - Skylake-Client
L0: Ubuntu 16.04.3 LTS Kernel - 4.4.0-98-generic & 4.4.0-101-generic libvirtd (libvirt) 2.5.0-3ubuntu5.5~cloud0 QEMU emulator version 2.8.0(Debian 1:2.8+dfsg-3ubuntu2.5~cloud0) L1: Ubuntu 16.04.3 LTS Kernel - 4.4.0-98-generic libvirtd (libvirt) 1.3.1-1ubuntu10.15 QEMU emulator version 2.5.0 (Debian 1:2.5+dfsg-5ubuntu10.16) Able to launch L2 VM in qemu mode. With same L0,L1 configuration able to launch L2 VM even with KVM on SandyBridge Machine -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/1682077 Title: nested KVM fails - KVM: entry failed, hardware error 0x0 To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/linux/+bug/1682077/+subscriptions -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs