Note: support on nested is and always was "best effort" as it is
famously known to work great until it doesn't. Recently upstreams stance
on this changed and in the last few versions nested x86 got some love
(due to some big players using it now), but I'm more looking to 20.04
than anything before it to call it good. So we might after this analysis
call it "known but won't fix" (depending on complexity). IIRC the rule
was always "feel free to use and it will be great, but not for
production as there might be dragons"

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https://bugs.launchpad.net/bugs/1829555

Title:
  nested virtualization w/first level trusty guests has odd MDS behavior

Status in linux package in Ubuntu:
  Confirmed
Status in qemu package in Ubuntu:
  New

Bug description:
  When nested kvm virtualization is used (with host-passthrough), if the
  first level guest is a trusty vm, odd behavior is seen in the second
  level guest:

    host os:
    disco/5.0.0-15.16-generic/qemu 1:3.1+dfsg-2ubuntu3.1
    contents of /sys/devices/system/cpu/vulnerabilities/mds:
       Mitigation: Clear CPU buffers; SMT vulnerable

    1st level vm:
    trusty/4.4.0-148.174~14.04.1-generic/qemu 2.0.0+dfsg-2ubuntu1.46
    contents of /sys/devices/system/cpu/vulnerabilities/mds:
      Mitigation: Clear CPU buffers; SMT Host state unknown

    2nd level vm:
    bionic/4.15.0-50.54-generic
    contents of /sys/devices/system/cpu/vulnerabilities/mds:
      Not affected

  This behavior is not seen when the first level guest is a xenial or
  bionic vm (same bare metal hardware):

    1st level vm:
    bionic/4.15.0-50.54-generic/qemu 1:2.11+dfsg-1ubuntu7.13
    contents of /sys/devices/system/cpu/vulnerabilities/mds:
      Mitigation: Clear CPU buffers; SMT Host state unknown

    2nd level vm:
    bionic/4.15.0-50.54-generic
    contents of /sys/devices/system/cpu/vulnerabilities/mds:
      Mitigation: Clear CPU buffers; SMT Host state unknown

  and:

    1st level vm:
    xenial/4.4.0-148.174-generic/qemu 1:2.5+dfsg-5ubuntu10.39
    contents of /sys/devices/system/cpu/vulnerabilities/mds:
      Mitigation: Clear CPU buffers; SMT Host state unknown

    2nd level vm:
    bionic/4.15.0-50.54-generic
    contents of /sys/devices/system/cpu/vulnerabilities/mds:
      Mitigation: Clear CPU buffers; SMT Host state unknown

  It's not clear whether this is an issue with linux/kvm or qemu in trusty.
  --- 
  ApportVersion: 2.14.1-0ubuntu3.29
  Architecture: amd64
  AudioDevicesInUse:
   USER        PID ACCESS COMMAND
   /dev/snd/controlC0:  ubuntu     2239 F.... pulseaudio
  DistroRelease: Ubuntu 14.04
  HibernationDevice: RESUME=UUID=4fa9460d-7ed4-49db-8e22-86a5107d0062
  InstallationDate: Installed on 2019-02-14 (92 days ago)
  InstallationMedia: Ubuntu 14.04.5 LTS "Trusty Tahr" - Release amd64 (20160803)
  Lsusb:
   Bus 001 Device 002: ID 0627:0001 Adomax Technology Co., Ltd 
   Bus 001 Device 001: ID 1d6b:0002 Linux Foundation 2.0 root hub
   Bus 004 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
   Bus 003 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
   Bus 002 Device 001: ID 1d6b:0001 Linux Foundation 1.1 root hub
  MachineType: QEMU Standard PC (i440FX + PIIX, 1996)
  Package: qemu 2.0.0+dfsg-2ubuntu1.46
  PackageArchitecture: amd64
  ProcEnviron:
   TERM=screen
   PATH=(custom, no user)
   XDG_RUNTIME_DIR=<set>
   LANG=en_US.UTF-8
   SHELL=/bin/bash
  ProcFB: 0 qxldrmfb
  ProcKernelCmdLine: BOOT_IMAGE=/boot/vmlinuz-4.4.0-148-generic 
root=UUID=9a35107e-83fa-4010-81e1-235a4ea14fe6 ro quiet splash vt.handoff=7
  ProcVersionSignature: User Name 4.4.0-148.174~14.04.1-generic 4.4.177
  RelatedPackageVersions:
   linux-restricted-modules-4.4.0-148-generic N/A
   linux-backports-modules-4.4.0-148-generic  N/A
   linux-firmware                             1.127.24
  RfKill:
   
  Tags:  trusty trusty
  Uname: Linux 4.4.0-148-generic x86_64
  UpgradeStatus: No upgrade log present (probably fresh install)
  UserGroups: adm cdrom dip libvirtd lpadmin plugdev sambashare sudo
  _MarkForUpload: True
  dmi.bios.date: 04/01/2014
  dmi.bios.vendor: SeaBIOS
  dmi.bios.version: 1.12.0-1
  dmi.chassis.type: 1
  dmi.chassis.vendor: QEMU
  dmi.chassis.version: pc-i440fx-bionic
  dmi.modalias: 
dmi:bvnSeaBIOS:bvr1.12.0-1:bd04/01/2014:svnQEMU:pnStandardPC(i440FX+PIIX,1996):pvrpc-i440fx-bionic:cvnQEMU:ct1:cvrpc-i440fx-bionic:
  dmi.product.name: Standard PC (i440FX + PIIX, 1996)
  dmi.product.version: pc-i440fx-bionic
  dmi.sys.vendor: QEMU

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