Summary of minimal steps to reproduce:
1. Spawn new KVM Guest of your choice
2. install test dependencies
$ apt-get install libvirt-daemon-system libvirt-clients libxml2-utils
3. run the following sequence as root
export LIBVIRT_DEFAULT_URI=lxc:///
cat << EOF > /tmp/smoke-lxc.xml
<domain type='lxc'>
<name>sl</name>
<memory unit='KiB'>256000</memory>
<currentMemory unit='KiB'>256000</currentMemory>
<vcpu placement='static'>1</vcpu>
<os>
<type>exe</type>
<init>/bin/bash</init>
</os>
<features>
<privnet/>
</features>
<clock offset='utc'/>
<devices>
<emulator>/usr/lib/libvirt/libvirt_lxc</emulator>
<filesystem type='mount' accessmode='passthrough'>
<source dir='/'/>
<target dir='/'/>
</filesystem>
<console type='pty'>
<target type='lxc' port='0'/>
</console>
</devices>
</domain>
EOF
virt-xml-validate /tmp/smoke-lxc.xml
virsh define /tmp/smoke-lxc.xml
virsh start sl
virsh list --all
# is running now
/etc/init.d/libvirtd restart
virsh list --all
# is no more running, but it should
