Hmm, it could also be a config change that is needed.  The 4.10-rc2
kernel uses the 4.9.0-2.3 configs and the 4.10-rc3 kernel uses the
4.10.0-0.2 config.  I'll compare those two as well.

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https://bugs.launchpad.net/bugs/1735420

Title:
  Avoid creation of /dev/kvm in Xenial KVM virtual machines on s390x

Status in Ubuntu on IBM z Systems:
  Triaged
Status in linux package in Ubuntu:
  Triaged
Status in linux source package in Xenial:
  Triaged

Bug description:
  Since nested virtualization with KVM is not supported on s390x, please 
disable this in Xenial - in case it's doable with reasonable effort.
  (I think it was already disabled for later Ubuntu releases ... was also 
discussed on IRC)

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